Noida, Sep 15 (APAC Media): The rupee fell 30 paise to 95.84 against the US dollar in early trade on Tuesday, weighed down by higher crude oil prices and ongoing geopolitical tensions in the Middle East.
The rupee opened at 95.84 against the dollar, compared with its previous close of 95.54. The currency and equity markets were closed on Monday on account of Ganesh Chaturthi.
Brent crude futures rose above $106 a barrel, adding pressure on the rupee as higher oil prices could increase India’s import bill and demand for dollars from oil companies.
Brent crude was trading around $106.94 a barrel, up about 1.19 per cent, amid concerns over possible disruptions to oil supplies through the Strait of Hormuz.
The dollar also remained firm against major currencies. The dollar index, which measures the greenback against six major currencies, was up 0.21 per cent at 99.60.
Higher US Treasury yields and continued uncertainty in the Middle East have supported demand for the US currency, market participants said.
The rupee’s weakness came despite gains in domestic equities. The Sensex was up 233.66 points at 75,022.37, while the Nifty gained 63.85 points to 23,462.30 in early trade.
Foreign investors, however, remained net sellers in the Indian equity market. Foreign institutional investors sold shares worth Rs 930.90 crore on Friday, according to exchange data.
Traders said the rupee could remain under pressure in the near term if crude prices stay elevated and the dollar continues to strengthen.
Market participants will also monitor the US Federal Reserve’s policy decision this week for indications regarding the US Federal Reserve’s policy decision this week for cues on the dollar and emerging-market currencies.
–ENDS–
Disclaimer:Â 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.
Also Read:
