Rupee opens weak at 95.35 against Dollar (Img: Internet)
New Delhi: The Indian rupee started the week on a weak note on Monday, opening at 95.35 against the US dollar amid rising geopolitical tensions in the Middle East, stronger crude oil prices and a firm US dollar. The domestic currency slipped 17 paise in early trade compared to its previous close of ₹95.18 in the interbank foreign exchange market.
| Detail | Information |
|---|---|
| Opening Rate | ₹95.35 per USD |
| Fall | 17 paise weaker |
| Previous Close | ₹95.18 per USD |
| Reason | West Asia tensions, Iran-Israel conflict |
| Crude Oil Price | $96.28 per barrel (up 3.43%) |
| Dollar Index | 95.33 (up 0.42%) |
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Forex traders said investor sentiment remained cautious due to escalating tensions between Iran and Israel, which have continued for over 100 days. The Middle Eact Crisis has kept global financial markets on edge and added pressure on emerging market currencies, including the Indian rupee.
Brent crude prices surged 3.43 per cent to $96.28 per barrel in futures trade, increasing concerns over India’s import bill and inflation outlook. Since India imports a significant portion of its crude oil requirements, higher oil prices directly impact the rupee deprecition.
The dollar index, which tracks the US currency against six major global currencies, rose 0.42 per cent to 95.33. Strong US economic data has also strengthened expectations around the US Federal Reserve’s future interest rate decisions, keeping the dollar firm globally.
Market experts believe the rupee may remain volatile in the coming sessions depending on geopolitical developments and oil price movement.
CR Forex Advisors Managing Director Amit Pabari said geopolitical tensions continue to influence the rupee despite recent RBI measures.
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He noted that any escalation in the US-Iran conflict or a further rise in crude oil prices could push the USD-INR pair back towards the 95.30 to 95.50 range. However, he added that the medium-term outlook still suggests a possible strengthening of the rupee towards the 94 level if global conditions stabilise.
Weak global sentiment also impacted Indian equity markets during early trade. The BSE Sensex dropped over 700 points, while the Nifty slipped more than 220 points. Foreign institutional investors remained net sellers, offloading equities worth Rs 8,776 crore on Friday, according to exchange data.
