Rupee Opens Lower Against Dollar Amid Global Cues

The Indian rupee began Thursday’s session on a softer note, opening at 89.95 per U.S. dollar, down 0.08% from its previous close of 89.88. Market participants attribute the weakness to global risk-off sentiment, rising crude oil prices, and continued foreign institutional investor (FII) outflows.

Analysts suggest that while the Reserve Bank of India (RBI) may intervene to stabilize volatility, external factors such as U.S. economic data and dollar strength will remain key drivers in the short term. The rupee’s trajectory is also closely linked to domestic equity flows and import demand.

Key Highlights

• Rupee opened at 89.95/USD, down 0.08% from the previous close of 89.88.
• Weakness attributed to global market caution and dollar strength.
• Rising crude oil prices add pressure on India’s import bill.
• FIIs continue net selling, weighing on currency sentiment.
• RBI expected to monitor and intervene if volatility spikes.
• Traders eye U.S. jobs data and global cues for direction.

The rupee’s near-term outlook remains cautious, with external headwinds likely to influence its movement more than domestic fundamentals.

Sources: Reuters, RBI Data Release, Economic Times