The Indian rupee declined by 19 paise to 85.15 against the US dollar in early trade on Wednesday, weighed down by renewed geopolitical tensions and a stronger demand for the American currency.
Indian currency under pressure as geopolitical tensions rise and US dollar strengthens; trade talks and foreign inflows offer partial support.
The Indian rupee declined by 19 paise to 85.15 against the US dollar in early trade on Wednesday, weighed down by renewed geopolitical tensions and a stronger demand for the American currency.
Currency traders attributed the rupee바카라™s fall to heightened tensions between India and Pakistan, which have triggered a broader risk-averse sentiment across financial markets.
Despite this pressure, inflows from foreign investors and a drop in international crude oil prices helped cushion the Indian currency바카라™s losses. At the interbank foreign exchange market, the rupee opened at 85.15 per US dollar, a 19 paise drop from its previous close. On Tuesday, the Indian currency had appreciated by 27 paise to close at 84.96 against the US dollar.
바카라œLooking ahead, the rupee is expected to find immediate support in the 84.90바카라“85.00 range, with a slight upward bias, moving towards the 85.80바카라“86.00 levels in the near term,바카라 said Amit Pabari, Managing Director at CR Forex Advisors.
In light of rising tensions between India and Pakistan, the United States has appealed to both nations 바카라œnot to escalate바카라 the conflict. US Secretary of State Marco Rubio is set to speak with the foreign ministers of both countries. At a press briefing on Tuesday, US State Department Spokesperson Tammy Bruce said, 바카라œWashington is reaching out to both India and Pakistan 바카라˜regarding the Kashmir situation바카라™ and telling 바카라˜them not to escalate the situation.바카라™바카라
The US dollar index, which tracks the greenback바카라™s strength against a basket of six major currencies, was trading 0.11 per cent higher at 99.34. Brent crude, the global oil benchmark, declined by 1.11 per cent to USD 63.54 per barrel in futures trade, easing pressure on India바카라™s import bill.
In India바카라™s equity markets, the 30-share BSE Sensex rose 165.90 points, or 0.21 per cent, to 80,454.28, while the broader Nifty index gained 51.30 points, or 0.21 per cent, to settle at 24,387.25.
According to exchange data, foreign institutional investors (FIIs) were net buyers on Tuesday, purchasing Indian equities worth ₹2,385.61 crore. Meanwhile, India and the United States are working on a provisional trade arrangement in goods, aiming to secure an 바카라œearly mutual win바카라 before finalising the first phase of a proposed bilateral trade agreement by the autumn of 2025.
India바카라™s Ministry of Commerce stated on Tuesday that both governments have launched sector-level discussions, with further engagements planned from the end of May.