Rupee Weakens Marginally to ₹95.74 Against US Dollar in Early Trade
The Indian rupee weakened marginally by 4 paise to ₹95.74 against the US dollar in early trade on Tuesday, amid pressure from elevated crude oil prices and increased dollar demand from importers. The movement reflects continued volatility in the foreign exchange market.
At the interbank foreign exchange market, the rupee opened at ₹95.74, compared with ₹95.70 at the previous close. Market conditions remained range-bound as investors assessed global developments, crude oil prices and movements in the US dollar.
According to market observations, intervention by the Reserve Bank of India (RBI) through state-run banks helped contain the currency’s decline. The central bank’s foreign-exchange operations remain an important factor in maintaining orderly market conditions and limiting excessive volatility.
Global developments, including geopolitical uncertainty surrounding Iran, also influenced investor sentiment. Brent crude prices rose to around USD 92.45 per barrel, adding pressure on India’s import bill because higher crude prices increase the country’s demand for foreign currency.
The dollar index was also marginally higher, supported by safe-haven demand. Meanwhile, domestic equity markets opened slightly lower, with the Sensex and Nifty registering early declines.
Foreign institutional investors, however, remained net buyers of Indian equities on Monday, purchasing shares worth ₹1,181.66 crore, according to exchange data.
The latest movement underscores the importance of crude oil prices, capital flows, global currency trends and RBI policy operations for the near-term trajectory of the rupee.
