9 hrs ago
Rupee Slips Against Dollar Amid Oil and Tension
The Indian rupee became slightly weaker against the US dollar on Wednesday.
It was worth 94.97 rupees for one dollar, compared with 94.95 rupees earlier.
Tensions between the United States and Iran made investors more cautious.
Oil prices also rose because people worried that supplies could be disrupted.
Higher oil prices can create inflation concerns.
Investors therefore expected the Federal Reserve might raise interest rates in September.
This helped the dollar become stronger because it is seen as a safer currency.
Indian stock markets also fell sharply in early trading.
The rupee fell 2 paise to 94.97 against the US dollar in early Wednesday trade.
Renewed US-Iran tensions, higher oil prices and rising Treasury yields pressured the rupee.
Brent crude rose 0.99% to USD 95.59 per barrel amid Strait of Hormuz supply concerns.
The dollar index increased 0.08% to 99.75 as investors sought safe-haven assets.
Sensex fell 788.52 points and Nifty dropped 269 points in early domestic trading.
- Who
- The Indian rupee, the US dollar, the Reserve Bank of India and market participants were involved.
- What
- The rupee fell 2 paise to 94.97 against the US dollar in early trade.
- Where
- At the interbank foreign exchange market and Indian domestic equity markets.
- When
- Wednesday in early trade; the previous close was on Tuesday.
- Why
- Renewed US-Iran tensions, higher Brent crude prices, rising US Treasury yields and expectations of a September Federal Reserve rate hike supported the dollar and pressured the rupee.
Key facts
- Rupee rate
- 94.97 per US dollar in early trade
- Previous close
- 94.95 per US dollar on Tuesday
- Brent crude
- USD 95.59 per barrel, up 0.99%
- Dollar index
- 99.75, up 0.08%
- Sensex
- Down 788.52 points to 76,155.76
- Nifty
- Down 269 points to 23,786.80
- Foreign institutional investors
- Net equity purchases of Rs 1,143.38 crore on Tuesday
Sources
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