Noida, Sep 24 (APAC Media): The rupee declined 11 paise to 95.84 against the US dollar in early trade on Thursday, weighed down by a stronger American currency, elevated crude oil prices and continued geopolitical uncertainty.
At the interbank foreign exchange market, the rupee opened at 95.84 against the US dollar, compared with its previous close of 95.73.
Forex traders said the domestic currency remained under pressure amid firm dollar demand and volatility in global markets. Rising geopolitical tensions in West Asia have also contributed to uncertainty over energy prices and global financial markets.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading 0.06 per cent higher at 100.87.
Brent crude futures were trading 0.97 per cent lower at USD 102.08 per barrel. However, crude prices remained elevated, raising concerns over India’s import bill and the country’s external balances.
Market participants are also tracking foreign fund flows and movements in domestic equities for further cues on the rupee.
Foreign institutional investors were net buyers in the Indian equity market on Wednesday, purchasing shares worth Rs 1,617.45 crore, according to exchange data.
Domestic equities, however, opened lower on Thursday. The 30-share BSE Sensex fell 506.43 points, or 0.68 per cent, to 74,321.82, while the NSE Nifty declined 181 points, or 0.77 per cent, to 23,266.15.
Analysts said the rupee’s near-term movement is likely to remain sensitive to crude oil prices, global dollar trends, foreign capital flows and developments in international bond markets.
A sustained rise in crude prices could increase India’s import costs and exert additional pressure on the domestic currency, while easing geopolitical tensions and stronger capital inflows could provide support.
The rupee has remained under pressure as global markets assess the impact of geopolitical developments, energy prices and changing expectations around monetary policy.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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