Noida, Sep 29 (APAC Media): The rupee declined 16 paise to ₹96.13 against the US dollar in early trade on Tuesday, weighed down by elevated crude oil prices and weak sentiment in domestic equity markets.
At the interbank foreign exchange market, the rupee opened lower and touched ₹96.13 against the American currency, compared with its previous close of ₹95.97.
Market participants said the domestic currency remained under pressure amid uncertainty in global markets and higher crude oil prices. Rising oil prices are a concern for India, as the country relies significantly on imports to meet its crude oil requirements.
The dollar’s movement against major global currencies and foreign fund flows into Indian markets are also being closely watched by traders for further direction.
The rupee has faced renewed pressure in recent trading sessions amid concerns over higher energy costs and developments in global markets. A sustained rise in crude prices could increase India’s import bill and widen pressure on the country’s external accounts.
Meanwhile, domestic equity markets opened cautiously, contributing to the subdued sentiment in the foreign exchange market.
Forex traders are likely to monitor fluctuations in crude oil prices, the US dollar index, foreign institutional investment flows, and global geopolitical developments.
The Reserve Bank of India is also closely watched by market participants for its possible intervention in the foreign exchange market to contain excessive volatility in the rupee.
Global risk sentiment, oil prices, and dollar demand from importers are likely to influence the domestic currency’s movement throughout the day.
The rupee’s fall to the ₹96-per-dollar level comes amid broader pressure on emerging-market currencies as investors assess the outlook for global growth, interest rates and commodity prices.
–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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