Rupee Depreciates Against Dollar Amid Ongoing Geopolitical Tensions
The Indian rupee has depreciated against the US dollar in early trade on Thursday, falling to 95.40 from its previous close of 95.33.
The depreciation is attributed to elevated crude oil prices and lingering geopolitical risks, particularly the standoff between the US and Iran over the Strait of Hormuz.
Forex traders cited investor sentiment as fragile due to ongoing tensions, with Iran warning that the strait will remain closed until 2029, while the US President asserted control over the region.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that the RBI has been supporting the rupee within a narrow range of 95.41-95.45 despite downward pressure from oil demand.
Meanwhile, foreign institutional investors offloaded equities worth Rs 1,002.50 crore on a net basis on Wednesday, and the Sensex was trading lower by 152.97 points at 77,813.38.