Noida, Oct 22 (APAC Media): The Indian rupee weakened to ₹94.50 against the US dollar in early trade on Thursday, pressured by rising crude oil prices and losses in domestic equity markets.
The domestic currency opened at ₹94.47 in the interbank foreign exchange market before declining to ₹94.50 against the greenback. The movement came a day after the rupee had gained 53 paise to close at ₹94.38.
Brent crude futures rose 1.58 per cent to $110.54 per barrel, raising concerns over India’s import bill and the potential impact on inflation. Higher oil prices typically increase demand for dollars from domestic importers, putting pressure on the rupee.
The US dollar index, which measures the greenback against a basket of six major currencies, fell 0.21 per cent to 101.56. Lower US Treasury yields provided some support to the Indian currency, limiting its decline.
Domestic equity markets opened lower, with the BSE Sensex falling 642.51 points to 73,067.18 and the NSE Nifty 50 declining 241.35 points to 22,570.90 in early trade.
Meanwhile, foreign institutional investors purchased equities worth ₹1,022.32 crore on Wednesday, according to exchange data.
Market participants said foreign currency inflows linked to initial public offerings (IPOs), along with a weaker US dollar, could provide support to the rupee. Investors are also monitoring US economic indicators, including weekly unemployment claims, for further cues on the dollar’s movement.
However, sustained foreign portfolio outflows and a further rise in crude oil prices could weigh on the currency, analysts said.
Investors will continue to track international oil prices, foreign fund flows, US bond yields and developments in global trade for further direction.
-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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