1 hr ago
Rupee Slips to 96.39 as Oil and Investor Selling Weigh
The Indian rupee lost a little value against the US dollar on Tuesday morning.
It reached 96.39 rupees for one dollar.
Higher oil prices and foreign investors selling shares added pressure.
Indian share markets were rising, which helped the rupee from falling further.
The dollar was also slightly weaker against other currencies.
The Reserve Bank of India was meeting to discuss interest rates.
Traders expected the bank to consider raising rates by 25 basis points.
The meeting took place while conflict in West Asia was raising concerns about inflation.
The rupee fell 4 paise to 96.39 against the US dollar in early Tuesday trading, after opening at 96.29.
Traders cited higher crude prices and continued foreign investor selling as pressures on the currency.
Domestic equity gains and a slightly weaker dollar index helped limit the rupee’s decline.
Brent crude futures rose 0.23% to $100.60 a barrel, while the dollar index eased 0.04% to 102.12.
The RBI’s policy meeting began Monday; traders were watching as a 25-basis-point rate increase was expected to be considered.
- Who
- The Indian rupee, with currency traders citing crude prices, foreign investor selling and market conditions.
- What
- The rupee fell 4 paise to 96.39 against the US dollar in early trade.
- Where
- The interbank foreign exchange market in India.
- When
- Early Tuesday trading; the RBI Monetary Policy Committee meeting began Monday.
- Why
- Higher crude prices and continuing foreign investor selling weighed on the rupee; stronger domestic equities and a weaker dollar index limited its losses.
Factors Supporting the Rupee
Factors Pressuring the Rupee
Market forces
Factors Supporting the Rupee
Gains in domestic equities and a weaker dollar index helped cushion the rupee’s fall.
Factors Pressuring the Rupee
Higher crude prices and persistent dollar demand from foreign investors and oil companies weighed on the currency.
Foreign investment flows
Factors Supporting the Rupee
The articles do not identify a specific inflow supporting the rupee.
Factors Pressuring the Rupee
Foreign institutional investors sold Indian equities worth ₹4,699.14 crore net on Monday.
Key facts
- Early-trade exchange rate
- 96.39 rupees per US dollar
- Opening rate
- 96.29 rupees per US dollar
- Previous close
- 96.35 rupees per US dollar on Monday
- Brent crude
- $100.60 per barrel, up 0.23%
- Dollar index
- 102.12, down 0.04%
- Net foreign institutional investor sales
- ₹4,699.14 crore on Monday
- Current RBI policy repo rate
- 5.25%
- Expected rate move under consideration
- A 25-basis-point increase
Quotes
Anil Kumar Bhansali
Head of Treasury and Executive Director at Finrex Treasury Advisors LLP
“The Reserve Bank has been protecting the rupee from its fall at 96.33 but the demand of dollar from FPIs and oil companies has not come down despite oil falling to USD 100.63 per barrel and dollar index to 102.12”
deccanchronicle.com
Sources
Related news
Rupee Near 96 as Oil Prices and Foreign Outflows Weigh
Indian Rupee Slips as Crude Nears $97 Amid Tensions
Rupee Slides to 95.79 as Oil and Outflows Weigh
Rupee Weakens as Oil Surges and Dollar Strengthens
Rupee Falls 20 Paise Against Dollar Amid Oil, Outflows
Rupee Falls Five Paise as Oil Prices, Outflows Weigh
Why More Indians Under 35 Are Considering Bariatric Surgery
ServiceNow Launches AI Workflow Factory and Autonomous Engineer
Uttar Pradesh Targets Microchip Manufacturing and Digital Economy Growth
Why Indian Readers Embraced Jeffrey Archer Across Generations
Morkel Eager to See Young Pacers Step Up Without Bumrah
