Mumbai, Mar 24: The rupee declined by 20 paise to 93.73 against the US dollar in early Tuesday trade, pressured by a stronger greenback and rising global crude oil prices despite diplomatic signals from the United States on Iran.
US President Donald Trump on Monday said Washington was in talks with a “respected” Iranian leader and claimed Tehran was willing to strike a deal to end the conflict. He also extended the deadline for Iran to reopen the Strait of Hormuz by five days, warning of possible strikes on its power infrastructure. However, Iran’s denial of these claims added uncertainty, pushing global oil prices higher.
Forex traders said persistent foreign institutional investor (FII) outflows further weighed on the rupee, though gains in domestic equity markets helped limit sharper losses.
At the interbank foreign exchange, the rupee opened at 93.66 against the dollar and slipped to 93.73, down 20 paise from its previous close.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the rupee had earlier touched a low of 93.98, with some trades even crossing the 94 mark, before recovering slightly following Trump’s remarks on delaying potential strikes.
He noted that the rupee remains under pressure due to rising oil prices, adding that the Reserve Bank of India was seen intervening around the 93.95–93.98 levels to stabilise the currency.
Meanwhile, the dollar index, which measures the greenback against a basket of six currencies, was up 0.42 per cent at 99.36. Brent crude, the global oil benchmark, was trading 3.96 per cent lower at USD 103.9 per barrel in futures trade.
On the domestic equity front, the Sensex rose 829.40 points, or 1.14 per cent, to 73,525.79, while the Nifty gained 234.65 points, or 1.04 per cent, to 22,747.30 in early trade.
According to exchange data, foreign institutional investors sold equities worth ₹10,414.23 crore on a net basis on Monday. (Agency)
