15 April,2026 08:04 PM IST | Mumbai | mid-day online correspondent
Higher inflation data drags rupee down against US dollar. Representational Image
The rupee weakened after early gains and settled at 93.44 (provisional) against the US dollar, down 9 paise from its previous close. It opened stronger at 93.19 and even touched an intra-day high of 93.13, but later lost momentum and ended at the day's lowest level.
On Monday, the rupee had already fallen by 52 paise to close at 93.35. The forex market remained closed on Tuesday due to Baba Saheb Ambedkar Jayanti.
- Oil prices and inflation data pressure currency
Market sentiment was affected by rising crude oil prices and inflation data released this week. India's Wholesale Price Index (WPI) inflation rose to a 3 year high of 3.88 per cent in March, driven by higher fuel, power and manufactured goods prices amid West Asia tensions.
The retail inflation based on CPI also increased to 3.4 per cent in March, compared to 3.21 per cent in February, mainly due to higher food prices.
- Global factors influence rupee movement
Despite early support from global news, the rupee could not sustain gains. Reports that US President Donald Trump suggested a possible second round of talks with Iran helped the currency open stronger, but gains faded later.
Forex analysts said the rupee remains highly sensitive to global oil and geopolitical developments.
Jateen Trivedi, VP Research Analyst at LKP Securities, said, "The currency continues to remain highly sensitive to developments around the Strait of Hormuz, which remains a key risk factor for global oil supply," reported PTI.
He added that in the near term, the rupee is expected to move in a range of 93.10-93.65, depending on oil prices and geopolitical updates.
The US dollar index rose slightly by 0.05 per cent to 97.95, showing mild strength in the greenback. At the same time, Brent crude oil climbed 1.50 per cent to USD 96.21 per barrel, adding pressure on import-dependent currencies like the rupee.
Domestic stock markets performed strongly. The sensex surged 1,263.67 points (1.64 per cent) to 78,111.24, while the Nifty rose 388.65 points (1.63 per cent) to 24,231.30. However, the positive equity momentum was not enough to support the rupee. Foreign Institutional Investors (FIIs) also remained net sellers, offloading equities worth Rs 1,983.18 crore on Monday, according to exchange data.
Currency traders said the rupee will continue to track global oil prices, inflation trends and geopolitical developments. Volatility is expected to remain in the near term as external factors dominate market sentiment.
(With PTI Inputs)
