Mumbai: The rupee fell 19 paise to 94.75 against the US currency in early trade on Wednesday, weighed down by the US currency’s strength in the overseas market.
Forex traders said that whenever new foreign inflows enter the country, the central bank is likely to use the opportunity to rebuild its reserve position rather than allow the rupee to strengthen too much.
Additionally, uncertainty prevailed over the progress of US-Iran peace talks, keeping a geopolitical risk premium in the market.
In the interbank foreign exchange market, the rupee opened at 94.67, then touched 94.75 against the US dollar, registering a loss of 19 paise from the previous close.
On Tuesday, the rupee depreciated by 5 paise to close at 94.56 against the US dollar.
“The global dollar is also adding pressure. After the US Federal Reserve took a cautious stance in its last policy meeting, the Dollar Index has continued to hold above the 101 mark,” said MD Amit Pabari of CR Forex Advisors.
As long as the dollar remains strong globally, the rupee is likely to remain under pressure, he added.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, traded at 101.34, up 0.15 percent.
Meanwhile, Brent crude, the global oil benchmark, traded 0.38 percent higher at $73.23 a barrel in futures trade.
According to Anil Kumar Bhansali, Head of Treasury and Managing Director, Finrex Treasury Advisors LLP, continued normalization of oil flows through the Strait of Hormuz after the US-Iran ceasefire and diplomatic engagement kept it on the lower side at $73.15 a barrel this morning, as uncertainty loomed over preliminary US-Iran peace talks. the market.
On the domestic equity front, the Sensex climbed 182.42 points to 76,661.36 in early trade, while the Nifty rose 49.90 points to 23,916.85.
According to exchange data, foreign institutional investors sold shares worth Rs 2,556.75 crore on a net basis on Tuesday.
On the domestic macroeconomic front, India’s fiscal deficit touched 9.6 percent of the FY27 budget target at the end of May, government data showed on Tuesday.
The fiscal deficit, or the gap between government expenditure and revenue, was Rs 1.62 lakh crore in value at the end of May 2026, data released by the Comptroller General of Accounts (CGA) showed.
