Rupee Trades at 95.06 Against US Dollar, Registers 7-Paise Decline

Indian Rupee Opens Weaker Amid Crude Oil Volatility

The Indian rupee opened 7 paise weaker at 95.06 against the US dollar on Tuesday, 2 June, amid continued volatility in crude oil prices driven by uncertainty surrounding US-Iran negotiations and sustained foreign investor selling in Indian equities. Market participants noted that despite ongoing portfolio outflows and crude oil prices hovering near $100 per barrel, the rupee has largely avoided sharp depreciation in recent sessions, supported by the central bank's active intervention in the foreign exchange market.

Market data reveals that foreign portfolio investors (FPIs) have sold nearly $2.5 billion worth of Indian equities over the past two trading sessions. Since the outbreak of the Iran conflict in late February, cumulative foreign outflows from Indian stocks have reached almost $25 billion. This significant outflow of foreign capital has put pressure on the Indian rupee, but the central bank's intervention has helped mitigate the impact.

The ongoing uncertainty surrounding US-Iran talks continues to impact global oil prices. Brent crude oil prices retained most of the gains from the previous session in early trading on Tuesday, as concerns over global oil supply and price stability persisted. US President Donald Trump stated on Monday that discussions with Iran were continuing, but Iran's Tasnim News Agency reported that Tehran had suspended indirect negotiations with Washington, adding to the uncertainty.

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