Currency markets opened on a cautious note on Wednesday as the rupee weakened by 6 paise to 90.62 against the US dollar. The decline came amid ongoing geopolitical tensions and steady demand for the greenback from importers.
At the interbank foreign exchange market, the rupee began trading at 90.56 per dollar. During the session, it fell further to 90.62, below its previous close. Earlier in the day, the local unit had also touched a high of 90.46. On Tuesday, the rupee had recovered from early losses and ended 10 paise stronger at 90.56.
CR Forex Advisors MD Amit Pabari said in a note, “In the near term, the 90.00–90.20 zone continues to act as a strong support for the rupee. As long as this area remains intact, USD/INR could slowly move higher, with the 91.00–91.20 range emerging as the next potential upside zone in the coming sessions.”
The dollar index, which measures the US currency against 6 major peers, slipped 0.14% to 96.66. Meanwhile, oil prices moved higher. Brent crude futures rose 0.78% to $69.34 per barrel. Given India’s heavy reliance on imported crude, rising oil prices typically increase the import bill and put pressure on the rupee over time, Pabari noted.
Indian equity markets opened in positive territory. The Sensex gained 141.21 points to 84,415.13, while the Nifty rose 51.95 points to 25,987.10. Exchange data showed that foreign institutional investors were net buyers on Tuesday, purchasing equities worth Rs 69.45 crore.
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