Rupee Slips 31 Paise To 92.32 Against US Dollar In Early Trade Amid FII Outflows, Surging Oil Prices, & Stronger Greenback

Mumbai: The rupee depreciated 31 paise to 92.32 against the US dollar in early trade on Thursday, pressured by FII outflows, rising global crude oil prices and a stronger greenback as the conflict in West Asia showed no signs of relenting. A weak start to the session at the domestic equity markets further weighed on the local unit, according to traders.

At the interbank foreign exchange, the rupee opened at 92.25 against the US dollar and slipped further to 92.32, down 31 paise from its previous close. The local unit declined 16 paise to settle at 92.01 against the US dollar on Wednesday.

"Escalations of attacks around the Strait of Hormuz and attacks on neighbouring countries pushed oil prices higher and the risk-off sentiment was supporting the dollar as a safe haven asset with prices of gold, along with silver, also falling," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said. "The Reserve Bank was protecting 92.00 levels yesterday (Wednesday) and may protect 92.30 levels today but the trend of the rupee still seems weak," he added.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.24 per cent higher at 99.47. Brent crude, the global oil benchmark, was trading higher by 9.94 per cent at USD 101.12 per barrel in futures trade. On the domestic equity market front, the Sensex plunged 827.58 points, or 1.08 per cent, to settle at 76,036.13, while the Nifty plummeted 310.55 points, or 1.13 per cent, to 23,556.30. Foreign institutional investors sold equities worth Rs 6,267.31 crore on a net basis on Wednesday, according to exchange data.

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