Rupee Falls Against Dollar Amid Geopolitical Tensions and Oil Price Volatility

The Indian rupee depreciated by 7 paise to 95.40 against the US dollar in early trade on Thursday, weighed down by high crude oil prices and ongoing geopolitical tensions.

Forex traders attribute the decline to the continued standoff between the US and Iran, with Iran warning that it will keep the Strait of Hormuz closed until 2029, while the US President has stated that the Strait is under US control.

Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, observed that despite oil prices hovering near $88 a barrel, the rupee opened at 95.40 due to the dollar index being higher at 100.01.

Foreign institutional investors sold 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.