Indian Rupee Declines 47 Paise to Close at 95.73 Against US Dollar

Rupee Depreciates 47 Paise to Close at 95.73 Against US Dollar

The Indian rupee depreciated 47 paise to close at 95.73 (provisional) against the US dollar on Tuesday, amid renewed geopolitical tensions in West Asia and a rise in crude oil prices. The rupee's decline was also attributed to a strong US dollar and weak domestic markets, according to forex traders.

At the interbank foreign exchange market, the rupee opened at 95.43 against the US dollar, touching an intra-day high of 95.33 and a low of 95.76 against the American currency. At the end of Tuesday's close, the rupee was quoted at 95.73 (provisional), down 47 paise from its previous closing.

The rupee's decline comes on the heels of a 34-paise gain on Monday, when the RBI sold dollars and kept the rupee well bid at all upper levels. However, the rupee remains vulnerable to rising crude oil prices and the strength of the American currency in the overseas market.

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USDINR Spot Price Range

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.05, down 0.19 per cent. Brent crude, the global oil benchmark, was trading up 3.43 per cent at USD 99.94 per barrel in futures trade after reports that the US had carried out fresh attacks against Iran.

The ongoing tensions between the US and Iran have led to concerns over military action in the Middle East, which may further weaken the rupee. However, softening of crude oil prices from higher levels may support the rupee at lower levels, according to Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Market Performance

On the domestic equity market front, Sensex dropped 479.26 points to settle at 76,009.70, while the Nifty declined 118 points to 23,913.70. Foreign institutional investors turned net buyers and purchased equities worth Rs 821.75 crore on Monday, according to exchange data.