The rupee fell 11 paise to 95.84 against the US dollar in early trade as high crude prices, rising US bond yields and losses in Indian shares weighed on the currency.

Rupee Loses Ground Against The US Dollar |

Mumbai: The Indian rupee weakened by 11 paise to 95.84 against the US dollar in early trade on Thursday, September 24, as a stronger greenback, elevated crude oil prices and falling domestic shares weighed on the currency.

At the interbank foreign exchange market, the rupee opened at 95.84 and remained at that level in initial deals. It had closed at 95.73 on Wednesday, when it also lost 11 paise.

Dollar and crude weigh on rupee

The dollar index, which measures the US currency against six peers, rose 0.06% to 100.87. Higher US bond yields added to the dollar’s strength and reduced the appeal of emerging market currencies.

Brent crude futures were down 0.97% at $102.08 a barrel. Despite the daily decline, oil remained well above the roughly $72 level seen in late February, before the Iran war.

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For India, which imports much of its oil, sustained high crude prices can increase demand for dollars from importers and put pressure on the rupee.

Forex traders said foreign capital inflows offered little support as domestic equities declined. Analysts also pointed to uncertainty over West Asia diplomacy after US and Iranian officials met on the sidelines of the UN General Assembly.

Stocks fall despite foreign buying

The Sensex fell 506.43 points, or 0.68%, to 74,321.82 in early trade. The Nifty declined 181 points, or 0.77%, to 23,266.15, adding to pressure on the currency.

Foreign institutional investors had been net buyers of Indian equities on Wednesday, purchasing shares worth ₹1,617.45 crore, according to exchange data. That inflow, however, did not prevent the rupee from slipping against the dollar on Thursday morning.

Traders will continue to watch oil prices, US bond yields and the dollar for cues on the currency’s direction. Developments in West Asia could also influence demand for crude and the greenback in coming sessions.

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