CA Sansaar
Rupee Drops Sharply to 94.12 Amid Geopolitical Tensions and Capital Outflows
Print
The Indian rupee extended its declining trend for the fourth consecutive trading session on Thursday, slipping past the crucial 94 level for the second time in the current month. In early market hours, the domestic currency depreciated by 34 paise to trade at 94.12 against the US dollar. The primary factor behind this weakness was the sharp rise in global crude oil prices, triggered by the lack of any significant progress in ongoing peace negotiations in West Asia, which heightened geopolitical concerns and impacted currency markets.
According to forex market participants, the rupee remained under sustained pressure due to multiple domestic and global factors. Heavy selling in the Indian equity markets weighed on investor sentiment, while continuous withdrawal of funds by foreign institutional investors further weakened the currency. Additionally, the strengthening of the US dollar in international markets, driven by increased global demand and safe-haven buying, added to the depreciation pressure on the rupee.
At the interbank foreign exchange market, the rupee opened on a weaker note at 94.04 against the US dollar. As trading progressed, it lost further ground and touched 94.12 during early deals, marking a decline of 34 paise compared to its previous closing level. The overall movement indicates cautious market sentiment and reflects the combined impact of external uncertainties and capital outflows on the domestic currency.
According to forex market participants, the rupee remained under sustained pressure due to multiple domestic and global factors. Heavy selling in the Indian equity markets weighed on investor sentiment, while continuous withdrawal of funds by foreign institutional investors further weakened the currency. Additionally, the strengthening of the US dollar in international markets, driven by increased global demand and safe-haven buying, added to the depreciation pressure on the rupee.
At the interbank foreign exchange market, the rupee opened on a weaker note at 94.04 against the US dollar. As trading progressed, it lost further ground and touched 94.12 during early deals, marking a decline of 34 paise compared to its previous closing level. The overall movement indicates cautious market sentiment and reflects the combined impact of external uncertainties and capital outflows on the domestic currency.
Category : Finance | Comments : 0 | Hits : 70
Comments