New Delhi: The Indian rupee fell 7 paise to 95.22 against the US dollar in early trade on Tuesday, as elevated crude oil prices, geopolitical uncertainty and a stronger greenback weighed on the currency ahead of the US Federal Reserve’s policy decision.
At the interbank foreign exchange market, the rupee opened at 95.17 and briefly recovered to 95.11 before slipping to 95.22, down 7 paise from its previous close.
On Monday, the currency had fallen 22 paise to settle at 95.15 against the dollar. It has now lost 77 paise over the last three trading sessions, according to the reported figures.
Dollar Strength and Oil Prices Weigh on Rupee
Forex traders said the rupee showed signs of recovery on expectations of intervention by the Reserve Bank of India (RBI), but continued to face pressure from foreign fund outflows and weak sentiment in domestic equity markets.
The dollar index, which measures the US currency against a basket of six major currencies, rose 0.06% to 101.86.
Brent crude, the global oil benchmark, was trading 0.91% lower at USD 114.76 per barrel in futures trade, but remained close to a six-month high.
Analysts linked elevated oil prices to Houthi-led attacks on Saudi Arabia’s oil infrastructure, which have heightened concerns about disruptions to global energy supplies.
Domestic Markets Open Lower
Indian equity benchmarks also traded in the red during early trade on Tuesday. The Sensex fell 126.16 points, or 0.17%, to 73,480.59, while the Nifty declined 47.30 points, or 0.21%, to 22,706.30.
Foreign institutional investors (FIIs) were net sellers of Indian equities on Monday, offloading shares worth Rs 1,462.49 crore, according to exchange data.
The combination of foreign fund outflows, uncertainty over global monetary policy and concerns about oil supply continues to weigh on the rupee.
