Why did the Indian rupee decline against the US dollar on Wednesday?

The rupee declined due to a sharp rise in global crude oil prices, a stronger US dollar, and outflows from foreign institutional investors.

What was the impact of crude oil prices on the rupee?

A sharp rise in global crude oil prices contributed significantly to the decline of the Indian rupee against the US dollar.

How much equity did foreign institutional investors sell?

Foreign institutional investors sold equities worth ₹4,672.64 crore on a net basis on Tuesday.

Home / Business and Economy / Rupee Tumbles Amidst Crude Oil Surge & War Fears

Rupee Tumbles Amidst Crude Oil Surge & War Fears

11 Mar

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Summary

Rupee fell 16 paise to 92.01 against the US dollar.
Global crude oil prices rose sharply, impacting the rupee.
Foreign investors sold equities worth ₹4,672.64 crore.

Rupee Tumbles Amidst Crude Oil Surge & War Fears

The Indian rupee experienced a significant decline, losing 16 paise to close at 92.01 against the US dollar on Wednesday. This downturn was largely attributed to a sharp escalation in global crude oil prices and a strengthening greenback amid the ongoing conflict in West Asia.

Forex traders indicated that continued outflows from foreign institutional investors (FIIs) and weak domestic equity market sentiment also contributed to the pressure on the rupee. On Tuesday, FIIs offloaded equities valued at ₹4,672.64 crore, further dampening market sentiment.

Analysts predict that risk-off sentiments in global markets and FII outflows may persist, continuing to weigh on the rupee. Market participants are also closely monitoring geopolitical developments in West Asia and upcoming US CPI data for trading cues. The expected trading range for the USD-INR spot price is between 91.70 and 92.40.

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