Rupee Slides 50 Paise Against US Dollar On FII Outflows, West Asia War Fears

Heavy FII outflows and weak sentiments at the domestic equity markets put further pressure on the local unit, according to forex traders.

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At the interbank foreign exchange market, the rupee settled at 95.75 (provisional), down 50 paise from its previous close.
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Summary is AI-generated, newsroom-reviewed
  • The rupee fell 50 paise to 95.75 against the US dollar on Thursday
  • Heightened West Asia tensions and a stronger dollar pressured the rupee
  • Foreign institutional investors sold equities worth Rs 2,124.98 crore
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Mumbai:

The rupee plunged 50 paise to settle at 95.75 (provisional) against the US dollar on Thursday amid heightened tensions in West Asia and a stronger greenback.

Heavy FII outflows and weak sentiments at the domestic equity markets put further pressure on the local unit, according to forex traders.

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At the interbank foreign exchange market, the rupee opened at 95.55 against the greenback and traded in the range of 95.55 to 95.76 before settling at 95.75 (provisional), down 50 paise from its previous close.

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The local unit appreciated 16 paise to close at 95.25 against the US dollar on Wednesday, amid likely intervention from the Reserve Bank of India (RBI) to curb excessive volatility and prevent a further slide in the domestic unit.

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Meanwhile, the US and Iran traded strikes for the second day on Thursday, pushing West Asia closer to the resumption of a full-scale war.

The American attack, which lasted into Thursday morning in Iran, appeared more intense and wider than the day before, but Tehran released little information on the extent of the damage.

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An Indian official said a US attack on an oil tanker allegedly trying to violate Washington's blockade on Iranian ports killed three Indian mariners, underscoring the danger to seafarers.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 100.07, up 0.13 per cent.

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Brent crude, the global oil benchmark, was trading lower by 0.67 per cent at USD 92.48 per barrel in futures trade.

On the domestic equity market front, Sensex declined 150.63 points to settle at 73,832.55, while the Nifty was down 53.35 points to 23,161.60.

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Foreign institutional investors offloaded equities worth Rs 2,124.98 crore on a net basis on Wednesday, according to exchange data.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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