Currency Watch: Rupee Slips To 90.07 Against US Dollar

 Inside the announcement  
The rupee opened at 90.07 in the interbank market before slipping further to 90.11 during early trade. Forex traders attributed the depreciation to rising global crude oil prices, which increase India’s import bill, and continued selling by foreign portfolio investors. Strong demand for the US dollar from corporates and importers added to the currency’s weakness. Market sentiment also remains cautious ahead of the US Federal Reserve’s policy outcome, which could influence capital flows and dollar strength globally.  

Notable updates  
• Rupee down 0.1% at 90.07 per US dollar as of 3:30 p.m.  
• Previous close stood at 89.98, marking a 16-paise depreciation in early trade  
• Weakness driven by elevated crude oil prices and foreign fund outflows  
• Strong dollar demand from corporates and importers added pressure  
• Traders watching US Fed policy outcome for cues on global capital flows  
• Broader market sentiment remains cautious amid global economic uncertainties  

Major takeaway  
The rupee’s slide highlights the vulnerability of India’s currency to external factors like oil prices and foreign investor sentiment. With global monetary policy shifts on the horizon, volatility in the rupee-dollar exchange rate is expected to persist in the near term.  

Sources: Livemint, Economic Times EnergyWorld, Rediff Moneynews