21 April,2026 05:14 PM IST | Mumbai | mid-day online correspondent
Global uncertainties push rupee lower against dollar. Representational Image
The Indian rupee declined by 32 paise to close at 93.48 (provisional) against the US dollar on Tuesday. The fall came amid a strong American currency and fluctuating crude oil prices, driven by uncertainty around West Asia peace talks, reported PTI.
Interestingly, the rupee slipped even as domestic stock markets remained positive, showing that global factors had a stronger influence on the currency.
At the inter-bank foreign exchange market, the rupee opened at 93.25 and fell to an intra-day low of 93.63 before settling at 93.48. On Monday, the rupee had already weakened by 25 paise to close at 93.16, although it had gained 47 paise in the two sessions before that.
Forex analysts said the rupee was also impacted by the recent move of the Reserve Bank of India to ease restrictions on speculative trading. The central bank had earlier imposed limits on non-deliverable forward (NDF) markets to control excessive speculation. It capped net open positions at USD 100 million.
Now, under revised rules, banks can resume offering non-deliverable derivative contracts in the rupee to both residents and non-residents, though some restrictions still apply. The USD 100 million cap remains in place, as per the news agency.
RBI Governor Sanjay Malhotra defended the RBI's intervention in foreign exchange markets while stressing the bank had not committed to an "indefensible peg " on the Indian rupee, which depreciated over four per cent following the conflict's eruption in March, reported IANS.
According to Anuj Choudhary, the rupee was pressured by uncertainty over US-Iran negotiations and rising crude oil prices. He said, "the rupee fell on uncertainty over US-Iran talks and a surge in crude oil prices," adding that a strong dollar also contributed to the decline, although positive global markets limited further losses. Choudhary expects the USD-INR to trade in the range of Rs 93.30 to Rs 93.90 in the near term.
"Traders may take cues from retail sales and ADP employment change data from the US. USD-INR spot price is expected to trade in a range of Rs 93.30 to Rs 93.90," Choudhary said reported the news agency.
The dollar index, which measures the strength of the US currency against six major currencies, rose 0.19 per cent to 98.09. Meanwhile, Brent crude prices were trading at USD 94.81 per barrel, down 0.70 per cent in futures trade. However, oil prices have remained volatile due to concerns over supply disruptions through the Strait of Hormuz and the uncertain future of the US-Iran ceasefire, which is set to expire soon.
Adding to tensions, Iranian officials recently stated that they would not negotiate under threats, while US President Donald Trump indicated he is not in a hurry to end the conflict.
Despite the weaker rupee, Indian equity markets closed higher. The BSE Sensex rose 753.03 points (0.96 per cent) to settle at 79,273.33, while the NSE Nifty gained 211.75 points (0.87 per cent) to close at 24,576.60.
However, Foreign Institutional Investors (FIIs) continued to sell equities, offloading shares worth Rs 1,059.93 crore on Monday, according to exchange data.
(With PTI Inputs)
