Rupee Slips 15 Paise to 88.65 vs USD Amid Rising Crude Oil Prices and Foreign Fund Outflows
Despite early losses, India-US trade optimism and MSCI index inclusions may support rupee in near term
Mumbai, Nov 12 : The Indian rupee slipped 15 paise to 88.65 against the US dollar in early trade on Wednesday, pressured by rising crude oil prices and sustained foreign fund outflows. Forex traders noted that optimism surrounding a potential India-US trade deal provided some support at lower levels.
At the interbank forex market, the rupee opened at 88.61 against the dollar before dropping to 88.65, compared to Tuesday’s close of 88.50.
Traders highlighted that the recent MSCI Global Standard Index review, which included Fortis Healthcare, GE Vernova T&D India, One97 Communications (Paytm), and Siemens Energy India, is likely to attract passive foreign fund inflows into these stocks, offering a cushion for the rupee amid global uncertainties.
“As these passive inflows enter, they could offset temporary weakness in the rupee, providing near-term support,” said Amit Pabari, MD of CR Forex Advisors.
Renewed hope over an impending bilateral trade deal with the US further buoyed the domestic unit. US President Donald Trump recently indicated that a “fair trade deal” with India is close, promising to lower tariffs on Indian goods. This marks the second time in less than two weeks that the US has signalled progress on the proposed deal.
The dollar index, which measures the greenback against a basket of six currencies, edged 0.06% higher to 99.50. Brent crude futures were down 0.26% at USD 65 per barrel.
On the domestic equities front, the Sensex gained 502.82 points to 84,374.14, while the Nifty rose 144.05 points to 25,839 in early trade. Foreign Institutional Investors sold equities worth Rs 803 crore on Tuesday, according to exchange data.
