Indian Rupee Falls 31 Paise to Close at 95.67 Against US Dollar
The Indian rupee weakened by 31 paise to close at 95.67 against the US dollar amid rising crude oil prices, foreign fund outflows, geopolitical tensions, and concerns over a proposed US tariff on Indian imports.
Prasanth Subramani
The Indian rupee extended its losses in the foreign exchange market, depreciating by 31 paise to close at 95.67 against the US dollar after concerns emerged over a proposed US tariff on Indian imports and continued pressure from global economic factors.
Investor sentiment weakened after the Office of the United States Trade Representative reportedly proposed an additional 12.5% tariff on certain Indian imports, citing labor-related compliance concerns. The development added to existing market worries surrounding global trade and economic uncertainty.
According to forex traders, strong demand for the US dollar, rising crude oil prices, geopolitical tensions, and continued foreign fund outflows significantly weighed on the Indian currency during the trading session.
In the interbank foreign exchange market, the rupee opened at 95.43 per US dollar and later fell to an intraday low of 95.80 before recovering slightly. It eventually settled at 95.67, representing a decline of 31 paise compared to the previous session's close.
The latest fall follows weakness in the previous trading session as well. On Tuesday, the rupee had already declined by 17 paise to close at 95.36 against the US dollar.
Market participants noted that rising crude oil prices remain a major concern for India, as higher energy import costs tend to increase demand for dollars and put pressure on the domestic currency. Persistent foreign institutional investor (FII) outflows have also contributed to the rupee's decline.
Analysts believe that future movements in the rupee will depend on developments in global trade negotiations, crude oil prices, geopolitical conditions, and policy measures by the Reserve Bank of India to stabilize currency markets.
With uncertainty continuing in global financial markets, traders are expected to closely monitor both international economic developments and domestic policy decisions for further direction in the foreign exchange market.
