Noida, Aug 12 (APAC Media): The Indian rupee weakened by 6 paise to ₹95.42 against the US dollar in early trading on Wednesday, pressured by a sharp rise in crude oil prices and renewed concerns over global energy supplies.
At the interbank foreign exchange market, the rupee opened at ₹95.40 and subsequently eased to ₹95.42, down from Tuesday’s close of ₹95.36.
Market sentiment was weighed down by Brent crude prices approaching $90 a barrel. Traders said uncertainty over the prospects of a quick agreement between the United States and Iran, along with concerns over shipping through the Strait of Hormuz, has heightened fears about oil supplies.
Brent crude, the global oil benchmark, was trading about 1% higher at $89.80 a barrel in futures markets. Rising oil prices typically put pressure on the rupee because India imports a substantial share of its crude requirements.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors, said ₹95.50 would be an important level to watch for the rupee. If crude prices remain elevated, the domestic currency could face further pressure toward the ₹95.80–₹96.00 range.
The dollar index, which measures the US currency against a basket of six major currencies, was up 0.05% at 99.87. Bhansali said markets were largely in a wait-and-watch mode ahead of the US inflation data, with elevated oil prices providing some support to the dollar.
In the domestic equity market, the Sensex was down 35.99 points at 78,097.31 in early trade, while the Nifty declined 31.15 points to 24,444.55.
Foreign institutional investors, however, remained net buyers of Indian equities, purchasing shares worth ₹258.55 crore on Tuesday, according to exchange data.
–ENDS–
Disclaimer: 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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