The rupee falls 27 paise to 95.79 against the US dollar in early trade
The Indian rupee dipped 27 paise, closing Friday's opening session at 95.79 versus the greenback amid rising global yields and oil prices.
The rupee depreciated 27 paise on Friday, moving from its previous close to 95.79 against the US dollar during early trading hours in India. At 0900 IST, the currency opened at 95.70 before losing ground. Analysts attribute this decline to elevated crude oil prices and rising foreign portfolio outflows from international investors, which increase the nation's import bill. Experts note that global yields also add pressure, while crude oil recently traded above USD 108. Conversely, domestic factors remain supportive, including record foreign exchange reserves, active intervention by the Reserve Bank of India, and robust domestic economic growth at 7.8 per cent. Despite these strengths, researchers suggest the rupee may test the 96 mark in the short term with the current level acting as a support zone. Investors are expected to monitor upcoming US and Indian inflation data for further direction on currency movements.
