The Indian rupee weakened by 10 paise to settle at 95.29 against the US dollar on Tuesday, reflecting continued pressure on the domestic currency amid global market dynamics.
Rupee Movement in Interbank Trading
At the interbank foreign exchange market, the rupee opened at 95.16 against the greenback. During the trading session, it touched an intraday high of 95.03 and a low of 95.31. The currency finally closed at 95.29, marking a decline of 10 paise from the previous close.
Factors Behind the Decline
Market analysts attributed the rupee's fall to a combination of factors, including sustained demand for the US dollar from importers and foreign capital outflows. The strength of the dollar in overseas markets also weighed on the local unit.
- The rupee opened weaker at 95.16, down from the prior session's close.
- It recovered briefly to hit a high of 95.03 before sliding to the day's low.
- The currency struggled to hold gains amid persistent dollar buying.
Market Outlook
Forex traders are closely watching global cues, including crude oil prices and the movement of the dollar index, for further direction. The Reserve Bank of India's intervention in the forex market also remains a key factor for stability.
The rupee's depreciation comes amid broader concerns over the current account deficit and inflationary pressures. However, robust foreign direct investment inflows and a resilient domestic economy provide some support to the currency.
