Overview
- The rupee weakened to 94.97 per US dollar in early trade after opening at 94.90, a fall of 21 paise from the prior close.
- A firmer US dollar pushed the move, with the dollar index near 101.94, which typically weighs on emerging‑market currencies like the rupee.
- Brent crude futures fell about 3.07% to $109.95, easing import bill pressure for oil‑importing India and partly cushioning the currency.
- Domestic equities rallied and foreign institutional investors bought Indian shares worth ₹3,598.54 crore, providing additional short‑term support for the rupee.
- RBI data show foreign exchange reserves declined by $1.269 billion to $719.748 billion and analysts at Kotak NEO expect USD‑INR to trade in a 94.40–95.60 range with central bank operations containing excess volatility.