Rupee weakens further amid dollar demand and global uncertainty

The Indian rupee slipped further in early trading on Monday, extending its losing streak to five consecutive sessions amid sustained demand for the US dollar and growing global uncertainty.

At the interbank foreign exchange market, the rupee opened at 94.25 against the US dollar before weakening slightly to 94.27, marking a decline of 11 paise from its previous close of 94.16 on Friday.

Currency traders said the rupee has come under pressure due to a mix of domestic and international factors, including rising crude oil prices and a perceived easing of regulatory controls by the Reserve Bank of India. Heightened geopolitical tensions have also pushed investors towards safer assets, boosting demand for the dollar.

The dollar index, which measures the strength of the US currency against a basket of six major currencies, edged down 0.09 per cent to 98.44. However, this offered only limited support to the rupee as broader market sentiment remained cautious.

Global oil benchmark Brent crude rose 1.16 per cent to USD 106.55 per barrel in futures trading, adding to concerns for oil-importing countries such as India and putting additional pressure on the domestic currency.

Market participants noted that foreign institutional investors have resumed selling भारतीय equities after a brief buying phase, reflecting a shift in sentiment amid persistent geopolitical risks. Data showed overseas investors offloaded shares worth Rs 8,827.87 crore on Friday.

Despite the near-term weakness, India’s foreign exchange reserves have climbed above USD 703 billion as of mid-April, providing a buffer against external shocks.

According to Amit Pabari, managing director of CR Forex Advisors, the rupee is likely to remain under pressure in the short term. While a softer dollar may offer some relief, uncertainty continues to dominate global markets.

He added that the currency could find support in the 92.80–93.20 range, while movements between 93.50 and 94.50 are expected to define its near-term trajectory.

Meanwhile, domestic equity markets showed resilience. The benchmark BSE Sensex rose 518.96 points, or 0.68 per cent, to 77,183.17, while the broader NSE Nifty gained 131.30 points, or 0.55 per cent, to 24,029.25 in early trade.

With PTI inputs