image sourced from original article at The rupee fell by 44 paise to close at 95.70 against the dollar on Tuesday, weighed down by rising crude oil prices, renewed geopolitical tensions in West Asia, and a stronger American currency. Weak domestic equity markets further pressured the local unit despite a positive close in the previous session.
Currency markets saw the rupee move between 95.33 and 95.76 during the day. Analysts said uncertainty surrounding tensions between the United States and Iran, along with concerns over possible military action in the Middle East, contributed to the negative sentiment. Although easing crude prices at lower levels may provide some support, the rupee remains sensitive to oil price movements and global dollar strength.
Brent crude rose sharply following reports of fresh American strikes against Iran, offsetting hopes of progress in negotiations to reopen a key shipping route. Meanwhile, domestic stock indices declined significantly, even as foreign institutional investors turned net buyers in the equity market.
