The Indian rupee continued its downward trend in early trade, depreciating by 24 paise to 94.25 against the US dollar, tracking weak global sentiment and sustained pressure from foreign capital outflows.
According to reports, the domestic currency opened at 94.25 and remained at the same level in early deals, marking another session of weakness against the greenback. The fall comes amid a broader risk-off mood in financial markets, with investors reacting to global uncertainties and a strong US dollar.
Forex traders noted that volatility in crude oil prices and geopolitical tensions in West Asia have added to pressure on emerging market currencies, including the rupee. Higher oil prices tend to hurt India’s import bill, which in turn weighs on the currency.
Another key factor behind the decline is continued foreign institutional investor (FII) selling in domestic equity markets. Outflows from Indian equities have reduced dollar supply in the local market, further weakening the rupee. Market participants also pointed to a stronger dollar index, which has been gaining against a basket of global currencies, making emerging market currencies less attractive.
The rupee has now extended its losing streak for several sessions, reflecting persistent pressure from external factors rather than domestic fundamentals alone. Traders say sentiment remains cautious, with global risk appetite fluctuating due to macroeconomic uncertainty and interest rate expectations in major economies.
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