The Indian rupee slipped 7 paise to 94.58 against the US dollar in early trade on Tuesday, extending its losing streak as demand for the American currency remained strong and investors stayed cautious over global developments.
Forex traders said the rupee came under pressure mainly due to month-end dollar buying by importers and corporates, who typically purchase the greenback to meet overseas payment commitments. The steady demand for dollars outweighed support from stable crude oil prices.
The domestic currency had settled at 94.51 against the dollar in the previous session after giving up its early gains. Tuesday’s decline reflects the cautious mood in the foreign exchange market, with participants closely tracking global economic signals and geopolitical developments.
A stronger US dollar also added to the pressure. Expectations that the US Federal Reserve may keep interest rates elevated for longer have supported the greenback, reducing the appeal of emerging market currencies, including the rupee.
Traders noted that concerns over geopolitical tensions in the Middle East continue to keep currency markets on edge. Although crude oil prices have remained relatively stable, any disruption in global energy supplies could increase India’s import bill and weigh further on the rupee.
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