4 hrs ago
Rupee Falls Below 96 Amid US-Iran Standoff, Oil Surge
The Indian rupee became weaker against the US dollar on Monday.
It ended the day at 95.97 rupees for one dollar.
This was a fall of 22 paise from Friday.
The rupee went past the important 96 level for the second time in two weeks.
Investors were worried because the United States and Iran remained in disagreement.
These worries pushed oil prices higher and made investors sell Indian shares.
Foreign investors sold a large amount of Indian stocks, adding pressure on the rupee.
A market analyst said the rupee could remain under pressure, although action by the Reserve Bank of India might help support it.
The rupee fell 22 paise to settle at 95.97 against the US dollar on Monday.
It breached the 96-per-dollar level for the second time in two weeks amid deteriorating global risk sentiment.
The US rejection of an Iranian proposal reduced hopes of a truce and reopening the Strait of Hormuz, according to the report.
Brent crude rose above USD 108 per barrel, while foreign investors sold Indian equities worth Rs 5,353.22 crore.
The Sensex fell 1,124.02 points and the Nifty declined 360.25 points; the report gives conflicting intraday rupee figures.
- Who
- The Indian rupee, US dollar, foreign investors, and market participants; analyst Anuj Choudhary also commented.
- What
- The rupee weakened 22 paise to 95.97 per US dollar and breached the 96 level.
- Where
- The movement occurred in India’s interbank foreign exchange market and domestic equity markets.
- When
- Monday, September 28; the rupee last breached 96 during intraday trading on September 17.
- Why
- Risk-off sentiment linked to the US-Iran stalemate, higher crude prices, stronger US dollar and Treasury yields, and foreign equity outflows pressured the rupee.
Key facts
- Closing exchange rate
- 95.97 rupees per US dollar
- Daily movement
- The rupee fell 22 paise from its previous close of 95.75.
- Important threshold
- The rupee crossed 96 per dollar for the second time in two weeks.
- Brent crude
- Brent crude futures rose 3.57% to USD 108.04 per barrel.
- Foreign equity flows
- Foreign Institutional Investors sold Indian equities worth Rs 5,353.22 crore net.
- Indian equities
- The Sensex fell 1,124.02 points to 72,771.72, while the Nifty dropped 360.25 points to 22,780.25.
- Industrial output
- India’s industrial output grew 8% in August, compared with 7.4% in July.
Quotes
Anuj Choudhary
Research Analyst at Mirae Asset Sharekhan
“The Indian rupee declined by nearly 20 paise on risk-off sentiments in global markets after the US rejected a deal proposal by Iran, diminishing hopes of reopening the Strait of Hormuz. Brent crude oil breached the USD 108 per barrel mark while global equities tanked. US dollar and US Treasury yields also strengthened.”
theprint.in
“Falling risk assets and surge in crude oil prices may continue to pressurise the rupee. However, any intervention by the RBI may support the rupee at lower levels.”
theprint.in
Sources
Related news
Rupee Slips Against Dollar Amid Oil and Tension
Rupee Falls 20 Paise Against Dollar Amid Oil, Outflows
Rupee Ends Six-Session Slide at 95.88 as Oil Surges
Indian Rupee Breaches 96 as Dollar Strengthens, Oil Stays High
Indian Rupee Slips as Crude Nears $97 Amid Tensions
Rupee Weakens as Oil Surges and Dollar Strengthens
Indian Stock Market Crash Wipes Out ₹7.4 Lakh Crore
Iranian Leader Says US Will Be Forced From Middle East
Endless Wars Reshape Battlefields Through Drones, Missiles and Technology
Iran’s Mojtaba Khamenei Says Enemy Forces Pushed From Hormuz
Iran Offers Seven-Day Ceasefire Framework, Seeks India’s Peace Voice
