Why did the Indian rupee fall against the US dollar on Tuesday?

The rupee declined due to higher crude oil prices, foreign fund outflows, geopolitical tensions, and weak equity markets.

What is the current status of the India-US trade deal?

The new US envoy to India indicated active engagement between both sides to firm up a trade deal.

How did India's retail inflation perform in December?

India's retail inflation rose to a three-month high of 1.33% in December, primarily due to increased food prices.

Home / Business and Economy / Rupee Tumbles Amidst Oil Surge & Fund Outflows

Rupee Tumbles Amidst Oil Surge & Fund Outflows

13 Jan

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Summary

Rupee fell 4 paise to 90.21 against the dollar.
High crude oil prices and foreign fund outflows pressured the rupee.
Geopolitical tensions and weak equity markets also impacted the currency.

Rupee Tumbles Amidst Oil Surge & Fund Outflows

The Indian rupee depreciated by 4 paise on Tuesday, concluding the trading session at 90.21 against the US dollar. This decline was significantly influenced by a surge in crude oil prices, a strengthening US dollar, and consistent outflows of foreign investment. Geopolitical uncertainties and a weak performance in domestic equity markets also contributed to the pressure on the rupee.

Analysts attribute the rupee's fall to ongoing geopolitical tensions and a general trend of global risk aversion. The combination of weak domestic markets, substantial foreign institutional investor (FII) outflows amounting to ₹3,638.40 crore on Monday, and rising crude oil prices have collectively weighed down the currency. However, optimism regarding a potential India-US trade deal and expectations of a rate cut due to weak US labor market reports may offer support at lower levels.