Rupee Falls Against Dollar Amid Geopolitical Risks and Foreign Fund Outflows
The Indian rupee depreciated against the US dollar on Thursday due to weak domestic markets and persistent foreign fund outflows.
Forex traders cited lingering geopolitical risks, including the delay in the deal between the US and Iran, as a factor contributing to the rupee's decline. The US dollar index was trading at 99.89, down 0.11%, while Brent crude fell by 1.51% to $87.64 per barrel.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, expects the rupee to trade with a slight negative bias due to the delay in the US-Iran deal and a strong dollar. However, he notes that renewed hopes of talks and softening crude oil prices may support the rupee at lower levels.
The RBI's intervention may also help stabilize the rupee. Foreign institutional investors sold equities worth ₹1,002.50 crore on a net basis on Wednesday.