2 hrs ago
Rupee Opens 16 Paise Lower as Oil, Outflows Weigh
The Indian rupee became weaker against the US dollar on Tuesday.
It first opened at 96.03 rupees per dollar and then fell to 96.13.
This means more rupees were needed to buy one dollar.
Oil became more expensive, which can pressure India because it imports a lot of crude oil.
Higher US interest-related returns also encouraged investors to prefer US assets.
Foreign investors had sold many Indian shares, adding to pressure on the rupee.
Indian stock markets also fell in early trading.
One analyst said the rupee could weaken toward 96.50, but stronger Indian economic data might help limit the decline.
The rupee opened at 96.03 against the US dollar before slipping to 96.13 in early trade.
The currency was 16 paise weaker than Monday’s close of 95.97.
Higher crude oil prices, US bond yields and foreign investor selling pressured the rupee.
Brent crude rose 1.51% to $106.87 a barrel amid Strait of Hormuz supply concerns.
Kotak Securities expects the rupee could approach 96.50, with 95.50 seen as key support.
- Who
- The Indian rupee, foreign investors, Indian markets and currency traders were involved.
- What
- The rupee weakened 16 paise to 96.13 against the US dollar in early trade.
- Where
- At the interbank foreign exchange market in Mumbai, India.
- When
- Tuesday’s early trade, after the rupee closed at 95.97 on Monday.
- Why
- Higher crude oil prices, rising US bond yields and continued foreign investor selling weighed on the currency.
Key facts
- Opening level
- 96.03 rupees per US dollar
- Early-trade level
- 96.13 rupees per US dollar
- Monday close
- 95.97 rupees per US dollar
- Brent crude
- Up 1.51% to $106.87 a barrel
- Dollar index
- Up 0.04% to 101.23
- Key resistance outlook
- 96.50, with 98 possible after a sustained move above 96.50
- Key support level
- 95.50
- Foreign share sales
- Net sales of ₹5,353.22 crore on Monday
Sources
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