The rupee has fallen by 7 paise to 90.96 against the US dollar in early trade on Tuesday, due to rising crude oil prices and a stronger greenback. This decline was exacerbated by the poor start of both domestic indices, Sensex and Nifty, which were weighed down by US President Donald Trump’s latest tariffs and the continued bloodbath in the IT sector.
However, the continued pressure was somehow mitigated by constant FII inflows, preventing a sharp fall, forex traders said.
At the interbank foreign exchange, the rupee opened at 90.91 against the US dollar and slipped further to 90.96, down 7 paise from its previous close. However, on Monday, it had gained 5 paise to settle at 90.89 against the US dollar.
According to Finrex Treasury Advisors LLP Head and Executive Director Anil Kumar Bhansali, “The Reserve Bank might be intervening to keep the rupee away from 91.00 levels, but the buying pressure will itself allow it to go beyond 91.00 levels.”
Meanwhile, the dollar index, which had gained strength against a basket of six currencies, was trading up 0.11 per cent at 97.81.
"The dollar index was higher amid repositioning. It faces headwinds from (US President Donald) Trump’s 15 per cent global tariffs announcement after the unfavourable Supreme Court ruling,” Bhansali said.
The Iran-US tensions have also fuelled rising crude oil prices, which rose by 0.85 per cent to $72.10 per barrel.
On the domestic equity market front, the Sensex tanked 730 points to 82,769.37 in early trade, while the Nifty fell 150 points to 25,567.15.
Besides, the rupee has constantly witnessed a decline in recent weeks due to rising global uncertainties.
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