Rupee Falls 28 Paise Against US Dollar
The rupee weakened by 28 paise to 94.77 against the US dollar in early trade on Thursday, reversing part of its previous session gains as uncertainty over a possible US-Iran agreement weighed on currency market sentiment.
Rupee Falls Against US Dollar
At the interbank foreign exchange market, the rupee opened at 94.77 against the dollar, down from its previous close of 94.49. The decline came after the Indian currency had gained sharply in the previous session.
Forex traders said the rupee came under pressure as market participants assessed reports of a possible US-Iran understanding aimed at reducing hostilities and reviving negotiations.
US-Iran Uncertainty Hits Currency Market
The broader currency market remained volatile due to uncertainty over the West Asia crisis, the Strait of Hormuz situation and global crude oil prices. Any shift in oil prices directly affects India’s import bill and the rupee’s movement.
The dollar also found some support as investors remained cautious ahead of further clarity on geopolitical developments. Traders said the rupee’s direction would depend on crude oil trends, foreign fund flows and signals from global risk assets.
Crude Oil And Dollar Demand In Focus
India’s dependence on imported crude makes the rupee sensitive to movements in global oil prices. A rebound in crude prices or stronger dollar demand from importers can put fresh pressure on the currency.
Market participants will also watch the Reserve Bank of India’s currency market intervention, if volatility increases further. For now, the rupee remains under pressure as global uncertainty continues to shape investor sentiment.
