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The Print
2 days ago
- Business
- The Print
Rupee falls 9 paise to close at 86.43 against US dollar
Moreover, elevated global crude oil prices and selling pressure from foreign investors also weighed on the local unit, they said, adding that the domestic markets are falling on risk aversion in the global markets amid the ongoing geopolitical tensions in the Middle East. Forex traders said the rupee dwindled amid weak domestic equity markets and the broad strength of the dollar. Mumbai, Jun 18 (PTI) The rupee depreciated 9 paise to close at 86.43 against the US dollar on Wednesday, dragged down by risk-off sentiments and elevated crude oil prices. At the interbank foreign exchange, the domestic unit witnessed heavy volatility. It opened at 86.42 against the greenback and touched an intra-day high of 86.25 and a low of 86.57 against the greenback during the day. At the end of Wednesday's trading session, the local unit was at 86.43, down 9 paise over its previous closing price. On Tuesday, the rupee declined 30 paise to close at 86.34 against the greenback. 'We expect the rupee to trade with a negative bias on risk aversion in the global markets and worries over rising crude oil prices. Escalating geopolitical tensions in the Middle East may weigh on the rupee. 'However, any de-escalation of tensions may see a recovery in the global risk assets. Traders may take cues from weekly unemployment claims data from the US. Traders may also await the Federal Open Market Committee (FOMC) meeting outcome. The US Federal Reserve is expected to keep interest rates unchanged. USDINR spot price is expected to trade in a range of 86.15 to 86.90,' said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan. According to Dilip Parmar, Senior Research Analyst, HDFC Securities, the rupee depreciated for the second consecutive day, primarily due to prevailing risk-averse market sentiment and anticipated dollar outflows, which are fuelled by ongoing geopolitical uncertainties. 'The negative carry return is also contributing to the rupee's downward pressure,' he said and added that the spot USD-INR pair is expected to find support around 85.90, while encountering resistance at the 86.70 level. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.17 per cent at 98.65. Brent crude, the global oil benchmark, fell 0.86 per cent to USD 75.79 per barrel in futures trade. In the domestic equity market, the 30-share BSE Sensex declined 138.64 points, or 0.17 per cent, to close at 81,444.66, while the Nifty fell 41.35 points, or 0.17 per cent, to 24,812.05. Foreign institutional investors (FIIs) purchased equities worth Rs 890.93 crore on a net basis on Wednesday, according to exchange data. PTI DRR HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
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Business Standard
5 days ago
- Business
- Business Standard
Rupee lags Asian peers despite dollar dip as FPIs pull out and oil rises
Despite a broad-based weakening of the US dollar, the Indian rupee has underperformed its Asian peers and remained one of the worst-performing currencies in the region. The weakness in the local currency is primarily attributed to persistent foreign portfolio investor (FPI) outflows from debt, muted equity market activity, and lacklustre foreign direct investment (FDI) inflows in recent months. 'Despite broader dollar weakness globally, this trend has not reflected in the USD/INR pair,' said V R C Reddy, head of treasury at Karur Vysya Bank. 'Over the past month, the rupee has largely hovered around the 85.50 mark. While most other Asian currencies have gained modestly—between 1 and 2 per cent—during this period, the rupee has remained under pressure. The sustained FPI outflows from the debt segment, coupled with subdued equity market participation in June and weak FDI inflows in recent months, have added to the rupee's woes,' he added. In June so far, foreign investors have net sold ₹5,402 crore worth of domestic equities and ₹13,848 crore of debt. The rupee has depreciated by approximately 0.6 per cent in June, placing it among the poorest-performing Asian currencies for the month. In the calendar year to date, the domestic currency has depreciated by 0.5 per cent against the greenback, while in the current financial year it has weakened by 0.7 per cent. On Friday, the rupee depreciated sharply to settle below the 86-per-dollar mark—a two-month low since April 9—on the back of a surge in crude oil prices driven by escalating tensions in West Asia. 'The Indian rupee has witnessed a significant depreciation against the US dollar and is among the worst-performing currencies in Asia,' said Dilip Parmar, senior research analyst, HDFC Securities. 'This sharp fall can be attributed to heavy foreign fund withdrawals, an overall risk-off sentiment in the markets, soaring global crude prices, and the US dollar's renewed strength as a safe-haven currency following Israel's military action against Iran,' he added. Meanwhile, the Dollar Index has seen a pronounced decline. As of June 15, it had fallen nearly 10 per cent since the beginning of the year, touching its lowest level in more than three years. On June 12, the index hit an intraday low of 97.61—its weakest level since 2022. It settled at 98.31 on Friday. The index measures the strength of the greenback against a basket of six major currencies. The decline in the dollar is largely driven by concerns over the US economic outlook, uncertainties around trade policy, and growing expectations of interest rate cuts by the Federal Reserve. Market analysts suggest that the greenback could face continued downward pressure in the coming months.
Indian Express
7 days ago
- Business
- Indian Express
Rupee falls 49 paise to 86.09 against dollar on Israel-Iran conflict
The Indian rupee depreciated 49 paise to close at 86.09 against the US dollar on Friday, weighed down by a surge in oil prices and strong dollar following Israel's attack on Iran. The local currency opened at 86.15 as against Thursday's close of 85.6. It fell to a low of 86.19 but recovered towards the closing. The rupee crossed the 86-mark for the first time in nearly three weeks. 'The Indian Rupee has experienced a notable depreciation against the US dollar and is one of the worst performers among Asian currencies. This decline is primarily attributable to substantial outflows of foreign funds, a pervasive risk-averse market sentiment, elevated global crude oil prices, and the strengthening of the US dollar as a safe-haven asset after Israel air strike on Iran,' Dilip Parmar, Senior Research Analyst, HDFC Securities said. Israel has struck Iranian nuclear targets, including Iran's primary uranium enrichment facility. The escalation in the Middle East tensions pushed WTI crude prices above $74, marking a 9 per cent surge, which added significant pressure on the rupee, said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities. The near-term market attention will be directed towards geopolitical developments over the weekend and the impending monetary policy decisions by three major central banks next week. 'The bias for the USD/INR pair remains supportive, driven by sustained haven demand for the US Dollar and anticipated dollar demand from oil importers. Technically, the pair has support at 85.40, while resistance is observed in the range of 86.25 to 86.45,' Parmar said. Meanwhile, domestic equity market indices, Sensex and Nifty, declined on Friday amid heightened tensions in the Middle East. The BSE's 30-share Sensex lost 0.7 per cent, or 573.38 points, to close at 81,118.6. The index had tanked 1337.39 points to touch an intraday low of 80,354.59. The broader Nifty fell 0.68 per cent, or 169.6 points, to finish at 24,718.6.
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Business Standard
13-06-2025
- Business
- Business Standard
Rupee weakens to 2-month low as crude surges on West Asia tensions
The rupee depreciated sharply against the US dollar on Friday, settling below the ₹86 per dollar mark—a two-month low since 9 April—amid a surge in crude oil prices triggered by escalating tensions in West Asia. The local currency weakened by 49 paise to settle at ₹86.09 per dollar, compared to the previous close of ₹85.60. During the day, the rupee fell as much as 0.65 per cent to touch ₹86.20 per dollar. The Reserve Bank of India (RBI) likely intervened in the foreign exchange market through dollar sales, which helped cap further losses, said dealers. 'The opening was expected to be weak due to geopolitical tensions,' said the treasury head at a private bank. 'RBI intervened; as a result, it briefly touched the 85.95 level. There was some mild inflow too,' he added. 'The Indian rupee weakened sharply today, breaching the ₹86/$ mark, driven by a sudden surge in crude oil prices and heightened geopolitical tensions following Israel's strikes on Iran. Brent crude jumped over 11% intraday, raising concerns over India's import bill, inflation outlook, and current account deficit,' IFA Global said in a note. Brent crude prices surged over 11 per cent to $78.50 per barrel, the highest in more than four months. The rupee was one of the worst-performing Asian currencies on the day, depreciating 0.57 per cent against the dollar. 'Near-term market attention will be directed towards geopolitical developments over the weekend and the impending monetary policy decisions by three major central banks next week,' said Dilip Parmar, Senior Research Analyst, HDFC Securities. In June so far, the rupee has been among the worst-performing Asian currencies, with a depreciation of 0.6 per cent. In the calendar year to date, the domestic currency has depreciated 0.5 per cent against the greenback, while in the financial year so far, it is down by 0.7 per cent. Meanwhile, India's foreign exchange reserves rose by $5.1 billion in the week ended 6 June, driven by a $3.4 billion increase in foreign currency assets, according to the latest RBI data. Total reserves stood at $697 billion, the highest since the week ended 4 October 2024, when reserves touched $701 billion. They had reached an all-time high of $705 billion in the last week of September 2024.
The Hindu
12-06-2025
- Business
- The Hindu
Indian stocks down 1% as U.S. says Israel may attack Iran
Indian stocks dipped 1% on Thursday (June 12, 2025) after United States withdrew diplomats from the West Asian nations saying that Iran was 'not safe' and may be attacked by Israel. Benchmark Nifty 50 and Sensex fell 1% to 24,888,20 points and 81692 points on Thursday. All sectoral indices dipped with Financial services indices falling nearly 2%. With Thursday's slump Indian markets broke a consecutive six day positive returns. 'The downturn was attributed to intensified profit-booking and risk-off sentiment, as escalating geopolitical tensions in the Middle East overshadowed positive macro cues such as softening inflation and encouraging trade data,' said analysts at Bajaj Broking. The slump in equity markets also led to a nine paise depreciation of rupee settled down to ₹85.09 a dollar. 'The Indian rupee becomes the worst-performing Asian currency, battered by risk-averse sentiments and a surge in crude oil prices driven by geopolitical concerns. Weak domestic equities have further weighed on the local currency,' said Dilip Parmar Senior Analyst at HDFC Securities.
