The Indian rupee weakened by 21 paise to 94.95 against the US dollar in early trading on Wednesday, pressured by rising crude oil prices and escalating geopolitical tensions between the United States and Iran.
Key Points
- The rupee fell 21 paise to 94.95 versus the dollar.
- Rising crude oil prices, nearing $100 per barrel, and US‑Iran tensions were the primary drivers.
- A weaker US dollar helped limit the magnitude of the rupee’s decline.
- Indian equity benchmarks, the Sensex and Nifty, also slipped sharply.
- Foreign institutional investors sold equities net on the day.
Mumbai, Sep 9 (PTI) – The rupee opened at 94.80 and later touched 94.95, a drop of 21 paise from its previous close of 94.74. At the interbank foreign exchange market, the currency’s movement reflected market sentiment.
A weak dollar index, currently at 98.76, provided some support, forex traders noted.
Analyst Anuj Choudhary of Mirae Asset Sharekhan commented that the rupee’s decline was driven by heightened geopolitical risks and oil price spikes. “Brent crude has neared the $100 mark as the US and Iran exchange strikes, creating uncertainty,” he said. He added that the rupee is likely to remain under pressure, though a soft dollar may cap losses. “USDINR is expected to trade between Rs 94.70 and Rs 95.15,” he projected.
In the equity markets, the Sensex fell 500.25 points to 75,060.61 and the Nifty declined 129.40 points to 23,506.10 in early trade.
Foreign institutional investors (FIIs) sold equities worth Rs 123.19 crore on a net basis on Tuesday, according to exchange data.
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