Rupee slips 20 paise to 93.73 against US dollar amid firm greenback, oil volatility

The Indian rupee weakened by 20 paise to 93.73 against the US dollar in early trade on Tuesday, pressured by a stronger greenback and elevated global crude oil prices despite diplomatic signals from US President Donald Trump on talks with Iran. 

At the interbank foreign exchange market, the local currency opened at 93.66 before slipping further to 93.73, compared with its previous close. 

Brent crude on the rise 

Brent crude jumped 4.2% and topped $104-per-barrel mark as Iran denied of talks with the US and reported fresh attack on its energy infrastructure. 

On Monday, Trump said the US was in talks with a “respected” Iranian leader and claimed Tehran was willing to strike a deal to end the ongoing conflict. He also extended a deadline for Iran to reopen the Strait of Hormuz by five days, warning of potential strikes on power infrastructure if the demand was not met. However, Iran’s denial of these claims added to uncertainty in global markets, keeping crude oil prices volatile. 

FII outflows further weighed on the rupee

Forex traders said sustained foreign institutional investor (FII) outflows further weighed on the rupee, although gains in domestic equity markets helped limit sharper losses. 

The dollar index, which tracks the US currency against a basket of six major peers, rose 0.42% to 99.36. 

Brent crude, the global oil benchmark, was trading at $103.9 per barrel in futures trade. 

In the domestic equity market, benchmark indices traded higher, supported by gains in banking, financial and IT stocks. The Nifty50 rose 293.45 points, or 1.30%, to 22,806.10, while the BSE Sensex advanced 912.01 points, or 1.25%, to 73,608.40. 

Among index constituents, Apollo Hospitals Enterprise, Kotak Mahindra Bank, and Shriram Finance were the top gainers on the Nifty50. 

Broader markets also traded in positive territory, though off their opening highs, with mid-cap and small-cap indices rising over 1% each. 

Meanwhile, foreign institutional investors offloaded equities worth ₹10,414.23 crore on a net basis on Monday, according to exchange data.