Mumbai, Mar 24 (PTI) The rupee dropped 23 paise to close at 93.76 against the US dollar on Tuesday as a strengthening greenback against major crosses and elevated global crude prices spooked investors.
Foreign fund outflows amid uncertainties over the West Asia crisis further weighed on the local unit, forex traders said.
At the interbank foreign exchange, the local unit opened at 93.66 against the greenback and remained volatile throughout the session. It eventually settled at 93.76, down 23 paise from its previous close.
The rupee breached the 94-level against the US dollar for the first time on Monday, before closing flat at 93.53.
“Persistent FPI outflows continue to pressure INR. A strong US dollar is keeping emerging market currencies weak, and the INR has weakened by about 4.5 per cent during the month. The rupee range for Wednesday is expected to be 93.65 to 94.25,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Trump on Monday said the US was talking with a “respected” Iranian leader and claimed the Islamic Republic was eager for a deal to end the war.
He also extended the deadline for Iran to reopen the crucial Strait of Hormuz or face attacks on its power plants, saying it has an additional five days.
However, Iran’s denial of Trump’s claims and continued hostilities in the region created uncertainty, pushing up global crude oil prices. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.23 per cent higher at 99.18.
Brent crude, the global oil benchmark, was trading 1.45 per cent lower at USD 101.4 per barrel in futures trade.
On the domestic equity market front, the Sensex rose sharply by 1,372.06 points, or 1.89 per cent, to 74,068.45, while the Nifty was up 209.65 points, or 0.93 per cent, to 22,722.30.
Foreign institutional investors sold equities worth Rs 8,009.56 crore on a net basis on Tuesday, according to exchange data. PTI TRB CS BAL BAL
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