Rupee Slips 4 Paise To 95.52 Amid Pressure From Rising Crude Prices
· Free Press Journal
The Indian rupee opened lower against the US dollar on Thursday as renewed tensions in West Asia pushed crude oil prices higher and increased concerns over global trade and energy supplies.
The domestic currency declined 4 paise to 95.52 per dollar in early trade compared with its previous close, weighed down by a sharp rise in international crude prices following fresh geopolitical developments.
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Analysts said oil prices surged after US President Donald Trump announced the end of the ceasefire with Iran following attacks on commercial vessels in the Strait of Hormuz and strikes on American military positions in Gulf countries.
The escalation raised concerns that disruptions in the Strait of Hormuz, one of the world’s most important oil shipping routes, could restrict tanker movement and affect global energy supplies.
Higher crude prices typically put pressure on oil-importing economies like India by increasing the import bill and affecting currency sentiment.
At the interbank foreign exchange market, the rupee started trading at 95.52 against the dollar, extending losses from the previous session. On Wednesday, the currency had fallen sharply by 52 paise to close at 95.48 per dollar.
Meanwhile, the dollar index, which measures the greenback’s performance against a basket of major currencies, was trading slightly lower at 100.98, down 0.09%.
Brent crude, the global oil benchmark, gained around 1% in futures trading to $78.80 per barrel as investors assessed the possibility of further supply disruptions due to the Middle East conflict.
Markets Rebound: Sensex Jumps Over 550 Points, Nifty Up By 0.7% As Investors Track Crude, US-Iran TensionsDespite pressure from higher oil prices, improving sentiment in Indian equity markets provided some support to the rupee.
Domestic benchmark indices recovered after a sharp fall in the previous session, with the Sensex rising over 550 points while the Nifty gained 0.7%.
Both indices had declined more than 2% on Wednesday following heightened geopolitical concerns.
Foreign institutional investors also offered support to Indian markets, turning net buyers of equities worth Rs 1,962.80 crore on Wednesday, according to exchange data.
Market participants are now closely tracking developments in West Asia, crude oil movements and global risk sentiment to assess the rupee’s near-term direction.