Rupee Weakens in Early Trade Amid West Asia Tensions and Elevated Oil Prices
Mumbai, May 4 (BNP): The Indian rupee opened on a weaker note on Monday, depreciating by 11 paise to 94.95 against the U.S. dollar in early trade, as ongoing geopolitical tensions in West Asia continued to weigh on investor sentiment.
Market participants remained cautious amid uncertainty in global markets, with risk appetite subdued due to the evolving situation in the region. Forex traders noted that sustained volatility in crude oil prices has added to the pressure on the domestic currency.
Brent crude, the global oil benchmark, was trading near the $108 per barrel mark, keeping concerns alive for oil-importing nations like India. Elevated crude prices tend to widen the country’s trade deficit and increase demand for the U.S. dollar, thereby exerting downward pressure on the rupee.
Analysts also pointed out that the strengthening of the U.S. dollar against major global currencies further contributed to the rupee’s weakness. In addition, cautious positioning by foreign investors and fluctuations in global equity markets influenced currency movements during the early session.
Despite the initial decline, traders expect the rupee’s movement to remain range-bound through the day, with investors closely tracking crude oil trends, geopolitical developments, and global market cues for further direction.
