The Indian rupee closed at 95.68 against the US dollar, hindered by elevated crude prices, geopolitical tensions in West Asia, and global risk sentiment, with experts warning of continued near-term pressures.
The Indian rupee weakened on Tuesday, ending at 95.68 against the US dollar as traders continued to focus on firm crude prices and persistent tensions in West Asia. The move came after a 19 paise fall in the previous session, underscoring how sensitive the currency remains to shifts in energy markets and global risk sentiment.
According to market participants cited by The Hindu BusinessLine, the dollar-rupee pair is likely to stay under modest pressure in the near term because of delays in a US-Iran agreement, strength in the dollar and concern that higher oil prices could worsen India’s import bill. Brent crude was trading above $90 a barrel, while the dollar index hovered near 99.60, reflecting continued support for the greenback. Siddhartha Khemka of Motilal Oswal Financial Services said Brent above $90 and uncertainty around the Strait of Hormuz would remain important watchpoints for the rupee, inflation and foreign flows.
The currency opened at 95.68 and moved in a narrow band between 95.64 and 95.69 before closing unchanged from its opening level, according to exchange data. Weak global cues also weighed on sentiment, with foreign institutional investors selling equities worth ₹2,535.10 crore on Monday, their heaviest net selling in three weeks. The US 10-year Treasury yield remained elevated, adding to the pressure on emerging-market assets.
Indian shares also finished lower, with the Sensex falling 492.70 points to 77,235.46 and the Nifty slipping 132.75 points to 24,154.90. Khemka said near-term sentiment was likely to stay subdued because of elevated crude, geopolitical uncertainty and foreign outflows, although resilient domestic fundamentals and policy support could still provide a steadier backdrop over the medium term.
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