The Indian rupee touched a low of 94.57 against the US dollar on Tuesday, marking its weakest level since March 30. The currency closed at 94.54, down 35 paise from the previous close. Losses were contained by dollar sales from state-run banks, likely on behalf of the Reserve Bank of India (RBI).
Stock Market Declines
The benchmark Sensex settled 0.5% lower at 76,887, while the Nifty declined 0.4% to 23,995. Market sentiment was hurt by higher crude oil prices, which raised concerns about inflation and fiscal deficit. Additionally, banking stocks came under pressure after the RBI released its final credit-loss guidelines, which could impact lenders' profitability.
Rupee Outlook
The rupee's weakness reflects global factors such as a strong dollar and rising oil prices. However, RBI's intervention through state-run banks helped limit the downside. Analysts expect the rupee to remain under pressure in the near term, with the 95 level being a key resistance.
