The Indian rupee declined by 6 paise against the US dollar amid a strengthening dollar, rising US Treasury yields, and geopolitical tensions, with oil prices and domestic markets influencing sentiment.
The rupee slipped 6 paise to 95.28 against the US dollar in early trade on Friday as a firmer greenback and higher US Treasury yields weighed on sentiment. Dealers said importers stepped up dollar purchases and some traders booked profits after the currency’s recent gains, offsetting support from broader market conditions.
In the interbank foreign exchange market, the unit opened at 95.27 and soon moved to 95.28. That followed a 14-paise fall on Thursday, when the rupee ended at 95.22 against the dollar.
Amit Pabari, managing director at CR Forex Advisors, told The Hindu BusinessLine that oil prices near $83 a barrel, a dollar index close to 100 and elevated US yields left 95.00-95.10 looking like strong support for the rupee, while a move towards 96.00-96.20 appeared plausible. He said oil and the dollar would remain the main near-term drivers, keeping the bias tilted towards weakness. The dollar index was last up 0.02% at 99.95, while Brent crude futures rose 1.20% to $83.48 a barrel.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said rising US Treasury yields and renewed geopolitical worries around the Strait of Hormuz were helping the dollar. Domestic markets also softened, with the Sensex down 235.36 points at 78,699.80 and the Nifty lower by 24.30 points at 24,608.25. Exchange data showed foreign institutional investors sold equities worth ₹17.86 crore on Thursday on a net basis.
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