On Wednesday, July 1, the rupee declined by 19 paise to 94.75 against the US dollar in early trade in Mumbai. The strength of the American currency in the overseas market weighed down the rupee. According to forex traders, the central bank is likely to use fresh foreign inflows to rebuild its reserve position, rather than allowing the rupee to strengthen. Uncertainty over US-Iran peace talks has also added to the geopolitical risk premium in the market.
The rupee opened at 94.67 and touched 94.75 against the US dollar at the interbank foreign exchange market, registering a loss of 19 paise from its previous close. CR Forex Advisors MD Amit Pabari stated that the global dollar is adding pressure, and as long as it stays firm globally, the rupee will remain under pressure. The dollar index was trading at 101.34, up 0.15 per cent.
Brent crude was trading higher by 0.38 per cent at USD 73.23 per barrel in futures trade. Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, attributed the lower crude price to the normalisation of oil flows through the Strait of Hormuz following the US-Iran ceasefire. The Sensex climbed 182.42 points to 76,661.36, while the Nifty was up 49.90 points to 23,916.85 in early trade.
Foreign institutional investors sold equities worth Rs 2,556.75 crore on a net basis on Tuesday, and India’s fiscal deficit touched 9.6 per cent of the FY27 budget target at the end of May, with a value of Rs 1.62 lakh crore.
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📰 Source: Siasat Gulf