Rupee climbs 11 paise to 89.05 against dollar in early trade
Rupee climbs 11 paise to 89.05 against dollar in early trade
Rupee edges higher to 89.05 as crude oil eases, but pressure from a strong dollar and outflows keep the outlook murky.
The rupee rose 11 paise to 89.05 per dollar in early trade on Tuesday, helped by softer international crude prices. The currency opened at 89.02 and traded at 89.05 in initial deals, up from its previous closing level. Analysts note the move comes as Brent crude slipped, offering a brief tailwind to the local unit, though the greenback remains firm and domestic sentiment remains sensitive to outflows.
The rupee had settled sharply higher by 50 paise at 89.16 on Monday, a day after it crashed 98 paise to touch a lifetime low of 89.66 on Friday, underscoring the volatility in recent sessions and the tug-of-war between oil, slope of risk appetite, and currency dynamics.
Brent crude declined about 0.33% to around $63.16 per barrel, while the dollar index hovered near 100.13, highlighting a delicate balance between softer oil and a persistent dollar strength. In domestic equities, the Sensex dipped 46.99 points to 84,853.72 and Nifty slipped 10.35 points to 25,949.15 in early trade, indicating cautious mood among investors amid global uncertainties and ongoing portfolio adjustments.
Foreign institutional investors were net sellers of equities on Monday, with outflows totaling ₹4,171.75 crore, contributing to the currency’s volatility. Market watchers say the rupee’s trajectory will hinge on oil prices, the dollar’s strength, and portfolio flows, with investors weighing any forthcoming policy cues and data releases this week.
Overall, the 89.05 level marks a tentative relief in the near term, but traders remain wary of further swings driven by external shocks and domestic data flow.
Cover image source: Rupee jumps 46 paise to close at 89.20 against U.S. dollar 🔗
