Rupee Slips To 95.43 Against Dollar
The Indian rupee weakened in early trade on Tuesday as fading hopes of a Middle East peace deal, rising crude oil prices and stronger dollar demand weighed on the currency. The rupee slipped 17 paise to 95.43 against the U.S. dollar after closing at 95.26 in the previous session.
Rupee Falls As Dollar Demand Rises
The rupee opened weaker as importers and banks increased demand for the U.S. dollar. The fall came after the currency had gained 34 paise on Monday, supported by optimism around a possible U.S.-Iran peace deal.
That recovery proved short-lived as market sentiment turned cautious again. Traders said renewed geopolitical uncertainty and month-end dollar demand added pressure on the rupee.
Crude Oil Prices Add Currency Pressure
Rising crude oil prices also weighed on the rupee. India imports more than 85% of its crude oil requirement, making the currency vulnerable whenever global oil prices increase.
Higher oil prices can widen India’s import bill, affect the current account balance and increase demand for dollars from oil companies. This usually puts downward pressure on the rupee.
Middle East Tensions Hit Market Sentiment
Hopes of a quick peace breakthrough in the Middle East dimmed after fresh U.S. strikes in Iran and signals that negotiations could take more time.
State-run banks reportedly sold dollars to limit the rupee’s fall, indicating possible intervention to control sharp volatility. Market participants will now watch crude oil movement, U.S.-Iran talks and RBI signals for the rupee’s next direction.
