Rupee Falls 7 Paise To 95.22 Against US Dollar In Early Trade, High Crude Oil Prices And FII Outflows Weigh On Indian Currency

Mumbai: The Indian rupee weakened by 7 paise to 95.22 against the US dollar in early trading on Tuesday, pressured by elevated crude oil prices, geopolitical tensions in West Asia and a stronger American currency ahead of the US Federal Reserve's monetary policy decision. The domestic currency remained volatile despite signs of possible intervention by the Reserve Bank of India (RBI).

Rupee Extends Losses

At the interbank foreign exchange market, the rupee opened at 95.17 against the US dollar and briefly strengthened to 95.11. However, renewed selling pressure pushed the currency to 95.22, compared with Monday's closing level of 95.15. The rupee had declined 22 paise in the previous session, marking its third consecutive day of losses. Over three trading sessions, the Indian currency has depreciated by 77 paise.

Crude Oil Prices Remain Elevated

Global crude oil prices continued to influence the USD/INR exchange rate. Brent crude futures declined 0.91 per cent but remained elevated at $114.76 per barrel, near six-month highs. Concerns over attacks on Saudi Arabian oil infrastructure and potential supply disruptions have kept energy markets volatile. Meanwhile, the US dollar index strengthened 0.06 per cent to 101.86, adding pressure on emerging-market currencies.

FII Selling Pressures Rupee

Persistent foreign institutional investor (FII) outflows and weakness in domestic equities further affected market sentiment. According to exchange data, FIIs sold Indian equities worth ₹1,462.49 crore on Monday. In early trading, the BSE Sensex declined 126.16 points to 73,480.59, while the NSE Nifty fell 47.30 points to 22,706.30.

Fed Decision In Focus

Forex traders expect continued volatility ahead of the US Federal Reserve's policy announcement. The central bank's interest rate outlook, crude oil movements and foreign investment flows are expected to remain important drivers of the rupee's near-term direction.