New Delhi, Apr 27 (BNP): The Indian rupee continued to weaken on Monday, slipping 11 paise to 94.27 against the US dollar in early trade, as global headwinds kept pressure on the domestic currency.
The decline marks the fifth straight session of losses, driven by a combination of rising crude oil prices, sustained foreign fund outflows, and heightened geopolitical tensions. These factors have increased demand for the US dollar while dampening sentiment toward emerging market currencies.
A major concern remains the surge in Brent crude, which has crossed the $106-per-barrel mark. Higher oil prices raise India’s import costs, leading to greater dollar demand from oil companies and putting additional strain on the rupee.
Foreign institutional investors have also continued to pare their holdings in Indian equities, reflecting caution in global markets and a tilt toward safer assets. This trend has further weighed on the currency.
Despite the pressure on the rupee, domestic equity markets showed resilience. The BSE Sensex and NSE Nifty 50 both traded higher in early deals, supported by selective buying in heavyweight stocks.
The contrasting movement highlights a divergence between currency and equity markets. While equities are responding to domestic cues and sectoral strength, the rupee remains sensitive to external risks.
Going ahead, the currency’s movement will depend largely on global oil price trends, geopolitical developments, and the direction of foreign capital flows.
