Indian rupee falls 45 paise against US dollar amid global market volatility
The Indian rupee dropped 45 paise to 94.67 against the US dollar amid global market volatility, rising crude oil prices, and continued strength in the US currency.
The Indian rupee weakened sharply on Friday, falling by 45 paise to close at 94.67 against the US dollar, as concerns over global economic uncertainty and rising demand for the American currency continued to pressure emerging markets.
Currency traders said the decline was driven by a combination of foreign fund outflows, elevated crude oil prices, and a strengthening US dollar in international markets.
The rupee opened lower in early trade and extended losses throughout the session as investors shifted toward safer assets amid uncertainty surrounding global interest rates and geopolitical tensions.
Market analysts noted that persistent demand for dollars from importers, particularly oil companies, also contributed to the currency’s decline. India imports a significant portion of its crude oil requirements, making the rupee sensitive to fluctuations in energy prices and global dollar movements.
Meanwhile, the US dollar index remained firm after expectations that the US Federal Reserve could maintain higher interest rates for a longer period. A stronger dollar often puts pressure on developing market currencies, including the rupee.
Financial experts warned that continued volatility in global markets may keep the rupee under pressure in the coming weeks, though intervention by the Reserve Bank of India could help limit excessive fluctuations.
Investors are now closely watching upcoming inflation data, crude oil trends, and signals from major central banks for further direction in currency markets.
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