5 hrs ago
Rupee Falls 30 Paise to 95.84 Amid Crude Surge
The Indian rupee became weaker against the US dollar on Tuesday.
It fell by 30 paise to reach 95.84 per dollar.
Oil prices rose to more than USD 106 per barrel.
This happened as tensions involving the United States and Iran increased.
Expensive oil can make it costlier for India to buy oil from other countries.
Oil importers therefore needed more dollars, adding pressure on the rupee.
Investors also bought dollars because they considered them safer during the tensions.
Indian stock markets nevertheless rose in early trading.
The markets had been closed on Monday for Ganesh Chaturthi.
The rupee opened 30 paise lower at 95.84 against the US dollar on Tuesday.
Brent crude rose to about USD 106.94 per barrel amid escalating US-Iran tensions.
Higher oil prices increased dollar demand from importers and raised concerns about India’s external balance and inflation.
The dollar index gained 0.21% to 99.60 as investors sought safer assets.
Indian equities rose in early trade, with the Sensex up 233.66 points and the Nifty up 63.85 points.
- Who
- The Indian rupee, oil importers, forex traders, and investors were involved in the market movements.
- What
- The rupee depreciated 30 paise to 95.84 against the US dollar in early trade.
- Where
- At the interbank foreign exchange market in India.
- When
- Tuesday early trade, after the forex and equity markets were closed on Monday.
- Why
- Higher Brent crude prices, increased dollar demand from oil importers, and heightened Middle East tensions pressured the rupee.
Key facts
- Rupee opening rate
- 95.84 per US dollar
- Change
- Down 30 paise from the previous close
- Previous close
- 95.54 per US dollar on Friday
- Brent crude
- USD 106.94 per barrel, up 1.19% in futures trade
- Dollar index
- 99.60, up 0.21%
- Sensex
- Up 233.66 points to 75,022.37
- Nifty
- Up 63.85 points to 23,462.30
Sources
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