Rupee Opens Lower, Slips 9 Paise to 95.17 Against US Dollar
Lower crude oil prices offered limited support as geopolitical tensions and foreign fund outflows kept the domestic currency under pressure in early trade.
India, Aug 07 : The Indian rupee opened on a weaker note on Thursday, slipping 9 paise to 95.17 against the US dollar in early trading as global geopolitical concerns outweighed the positive impact of softer crude oil prices.
At the interbank foreign exchange market, the domestic currency began the session at 95.13 before declining further to 95.17 against the greenback. The latest movement followed Wednesday’s closing level of 95.08, reflecting continued pressure on the local currency despite easing energy prices.
Currency market analysts noted that investors remain cautious due to ongoing geopolitical uncertainties, which continue to influence global financial markets. While lower crude oil prices generally reduce India’s import bill and support the rupee, persistent global risks have prevented the currency from gaining strength.
According to Amit Pabari, Managing Director of CR Forex Advisors, the rupee is currently balancing between encouraging diplomatic developments and lingering geopolitical tensions. He said that any positive progress surrounding the Strait of Hormuz could help the currency recover toward the 94.80–95.00 range in the near term.
The US dollar also remained firm in international markets. The dollar index, which measures the greenback against a basket of six major currencies, edged up 0.05 percent to 99.72 during early trading.
Meanwhile, Brent crude futures, the global benchmark for oil prices, slipped 0.20 percent to USD 79.29 per barrel. The decline in crude prices typically benefits India, one of the world’s largest oil importers, by easing inflationary pressures and reducing foreign exchange outflows.
Domestic equity markets, however, started the day on a positive note. The BSE Sensex advanced 201.43 points to reach 78,782.43 during opening trade, while the NSE Nifty gained 16.35 points to trade at 24,641.
Investor sentiment remained cautious after foreign institutional investors (FIIs) turned net sellers in the previous trading session. According to exchange data, overseas investors sold equities worth Rs 943.42 crore on a net basis on Wednesday, adding pressure to domestic financial markets.
Market participants will continue to monitor global geopolitical developments, crude oil price movements, US dollar trends, and foreign investment flows, all of which are expected to play a significant role in determining the rupee’s direction over the coming sessions.
