The Indian rupee fell by 1 paisa to settle at a provisional 90.92 against the US dollar on Thursday. This minor decline was driven by rising global crude oil prices and a strong dollar against other major currencies.
However, forex traders noted that steady inflows of foreign funds helped support the local currency and prevented a larger drop.
Intra-day Market Performance
At the interbank foreign exchange, the rupee opened at 90.86 against the greenback. During the session, it traded within a narrow range between 90.81 and 90.93. It eventually closed at 90.92, just 1 paisa lower than its previous close.
On Wednesday, the rupee had stayed within a similar range but ended the day with a gain of 4 paise, settling at 90.91.
Market Outlook and Key Factors
Market analysts suggest that the rupee may face some pressure in the coming days.
“We expect the rupee to trade with a negative bias due to geopolitical risks between the US and Iran, along with uncertainty over trade tariffs,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.
Key factors to watch include:
- US-Iran Negotiations: Upcoming meetings in Geneva will be a major focus for investors.
- US Economic Data: Traders are keeping an eye on weekly unemployment claims from the United States.
- Price Range: The USD-INR spot price is expected to trade between ₹90.60 and ₹91.20.
Global and Domestic Indicators
- Dollar Index: The index, which measures the dollar against six major currencies, was down slightly by 0.03% at 97.73.
- Crude Oil: Brent crude rose by 0.21% to reach $71.00 per barrel in the futures market.
- Stock Market: Domestic equities saw mixed results. The Sensex dipped 27.46 points to close at 82,248.61, while the Nifty rose by 14.05 points to 25,496.55.
- Foreign Investment: According to exchange data, foreign institutional investors (FIIs) purchased shares worth ₹2,991.64 crore on Wednesday.
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