Rupee slips 7 paise to 89.97 against US dollar in early trade
The Indian rupee opened weaker and fell by 7 paise to 89.97 against the US dollar in early trade. The decline came amid a firm dollar overseas, continued foreign fund outflows and cautious sentiment in global financial markets.
The Indian rupee weakened in early trade, slipping by 7 paise to 89.97 against the US dollar as pressure from global and domestic factors weighed on the currency. Forex traders said a strong dollar in international markets and persistent outflows by foreign investors contributed to the decline.
Market participants pointed to cautious sentiment across global markets, driven by uncertainty around interest rate outlooks in major economies. A firmer dollar index reduced the appeal of emerging market currencies, including the rupee, during early trading hours.
Foreign institutional investors were seen trimming exposure to domestic equities, adding to pressure on the local currency. Demand for the US dollar from importers also supported the greenback against the rupee.
Traders said crude oil prices, which remained elevated in overseas markets, further influenced sentiment. Higher crude prices tend to negatively impact the rupee due to India’s dependence on energy imports.
The rupee’s movement is also being closely tracked against domestic equity market trends. Weakness in benchmark indices during early trade limited support for the currency, as risk appetite remained subdued.
Currency experts noted that near term movement of the rupee will depend on global cues, including US economic data, bond yield trends and investor response to geopolitical developments. Any intervention or guidance from the Reserve Bank of India will also be closely watched by market participants.
Despite the early decline, analysts believe the rupee may find support at lower levels if inflows improve or if global risk sentiment stabilises. However, volatility is expected to persist in the near term as markets react to external developments and capital flow trends.
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