Mumbai, Apr 9 (PTI): The rupee depreciated 17 paise to 92.71 against US dollar in early trade on Thursday as the fragile ceasefire and Iran’s threat to step out of the talks if Israel kept bombing Lebanon kept investors wary.
Forex traders said markets are in a wait-and-watch mode rather than strong directional positioning as the situation in West Asia remains fragile.
Geo-Political uncertainty was still high amid Iran’s threat to step out of the talks if Israel kept bombing Lebanon, keeping investors wary of the opening of the Strait of Hormuz.
At the interbank foreign exchange market, the rupee opened at 92.63 against the US dollar, then gained ground to touch 92.71 against the US dollar in initial trade, registering a gain of 17 paise over its previous close.
On Wednesday, the rupee had settled at 92.54 against the American currency.
Iran closed the Strait of Hormuz again in response to Israeli attacks in Lebanon. The White House demanded that the channel be reopened and sought to keep peace talks on track.
“The fragile ceasefire could be jeopardized by the renewed Middle East tensions as Israel struck Lebanon and Iran warned of moving out of the ceasefire if strikes against Lebanon continued,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
This caused the dollar index to rise to 99.10, with the Euro and GBP both falling against the dollar. Asian currencies also fell from their Wednesday highs.
The RBI left Interest rates unchanged on Wednesday but flagged risks to the Indian economy from disruptions caused by the Iran war, Bhansali noted.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.10 per cent at 99.03 Brent crude, the global oil benchmark, was trading higher by 1.93 per cent at USD 96.52 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex dropped 243.57 points to 77,319.33 in opening trade, while the Nifty declined 88.3 points to 23,909.05.
Foreign Institutional Investors offloaded equities worth Rs 2,811.97 crore on Wednesday, according to exchange data.
Meanwhile, India’s Foreign Secretary Vikram Misri met senior US officials here and discussed ways to further deepen the defence and trade relations and exchanged views on the developments in the Indo-Pacific and West Asia.
On a three-day visit here, Misri met under secretaries Michael Duffey and Elbridge Colby in the Department of Defence, and under secretaries Jeffrey Kessler and William Kimmitt in the Department of Commerce.
This report is given by Press Trust of India. The Sen Times holds no responsibility for its content.
Why is the Indian Rupee falling against the US dollar today?
The Indian Rupee fell 17 paise to 92.71 against the US Dollar today primarily due to heightened geopolitical uncertainty in West Asia and a strengthening Dollar Index. This depreciation reflects investor anxiety over a fragile ceasefire as Iran threatens to exit peace talks following continued Israeli strikes in Lebanon.
Will the Strait of Hormuz closure affect petrol prices in India?
The closure of the Strait of Hormuz will exert significant upward pressure on Indian petrol prices due to the disruption of critical maritime oil supply chains. Brent crude has already climbed 1.93% to $96.52 per barrel, directly increasing the landed cost for Indian oil marketing companies.
Is the US dollar getting stronger due to Middle East war?
The US dollar is strengthening as a direct consequence of the Middle East conflict, functioning as the global primary safe-haven asset amidst geopolitical instability. The Dollar Index reached 99.10 as investors liquidated positions in the Euro, GBP, and Asian currencies to hedge against the risks of a wider regional war.
What is the impact of Iran-Israel tensions on Indian stock market?
Iran-Israel tensions have triggered a significant bearish trend in the Indian stock market, evidenced by the Sensex dropping 243.57 points and the Nifty declining 88.3 points in early trade. Heightened geopolitical risk premiums are forcing institutional investors to de-risk portfolios, leading to immediate domestic equity devaluation.
How do FII outflows affect the value of the Rupee?
Foreign Institutional Investor (FII) outflows exert downward pressure on the Rupee by increasing the supply of INR in the market while simultaneously spiking demand for US Dollars. Exchange data confirms that FIIs offloaded equities worth ₹2,811.97 crore recently, necessitating a massive conversion of local currency into USD for repatriation.
What were the RBI interest rate decision April 2026 highlights?
The RBI interest rate decision in April 2026 resulted in a status quo, with the Monetary Policy Committee opting to leave interest rates unchanged to maintain stability. However, the central bank flagged severe downside risks to the Indian economy stemming from supply chain disruptions and inflationary pressures caused by the Iran-Israel conflict.
