Rupee declined against the US dollar in early trade on March 17 but later recovered some of the losses to end the day at 92.42 per dollar in the domestic foreign exchange market.
At the interbank forex market, the rupee opened around 92.35 against the US dollar and soon weakened further, falling 14 paise to 92.42 during the initial trading session. The early decline was mainly driven by global and domestic factors that continued to pressure the local currency.
Forex market participants said the fall in the rupee was influenced by rising global crude oil prices, which increase India’s import bill and often weaken the domestic currency. In addition, foreign institutional investors (FIIs) continued to pull funds out of Indian equities, adding further pressure on the rupee. A stronger US dollar in international markets also weighed on the Indian currency during the day’s trading.
Despite the early weakness, the rupee managed to recover some ground later in the session. The domestic currency eventually closed at 92.42 per dollar, about 4 paise stronger than the previous closing level of 92.46. Traders said the recovery helped limit the overall losses for the day.
Market experts noted that possible intervention by the Reserve Bank of India (RBI) through state-owned banks may have supported the rupee and prevented a sharper fall. The central bank often steps in to stabilise the currency when there is excessive volatility in the forex market.
Global developments also continue to influence the movement of the rupee. Geopolitical tensions in West Asia have pushed up crude oil prices in recent weeks, raising concerns for oil-importing countries like India. Higher oil prices typically increase demand for dollars, which can weaken the rupee.
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