Noida, July 21 (APAC Media): The Indian rupee declined by 6 paise to 96.42 against the US dollar in early trade on Tuesday, weighed down by a stronger American currency and elevated crude oil prices amid persistent geopolitical concerns.
The domestic unit opened lower at the interbank foreign exchange market and traded at 96.42 against the greenback, compared with its previous close of 96.36.
Currency dealers said the US dollar remained supported by safe-haven demand as investors tracked global geopolitical developments, while firm crude oil prices continued to pressure the rupee due to concerns over India’s import bill.
The dollar index, which measures the US currency against a basket of six major global peers, traded marginally higher during early Asian hours, reflecting continued strength in the greenback.
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Meanwhile, Brent crude futures remained elevated, adding to concerns over inflationary pressures and external sector risks for oil-importing economies such as India.
Market participants are expected to monitor global risk sentiment closely, crude oil movements, and foreign fund flows for further guidance on the domestic currency.
Analysts said volatility may persist in the near term as investors assess geopolitical developments and expectations surrounding major central bank policy decisions.
–ENDS–
Disclaimer:Â This article is for informational purposes only. APAC Media is not liable for any investment decisions or losses. Please conduct your own research or consult a financial advisor before investing.
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