Rupee slips to 94.95 as crude nears $100 amid intensifying US-Iran tensions

Rupee began Wednesday on a weak note, tumbling 21 paise to 94.95 against the US dollar.

Rupee began Wednesday on a weak note, tumbling 21 paise to 94.95 against the US dollar as surging crude oil prices and escalating US-Iran tensions weighed on the domestic currency. The fall was partly cushioned by a weaker dollar, which provided some support to the rupee.The currency began trading at 94.80 against the dollar in the interbank foreign exchange market and subsequently touched 94.95. In the previous session on Tuesday, Rupee closed at 94.74, falling 18 paise against the American currency.“Indian rupee opened lower on escalating geopolitical tensions and surge in crude oil prices. Brent has neared the $100 mark as US and Iran attack each other,” said Anuj Choudhary, research analyst, Mirae Asset Sharekhan.Choudhary said that the currency was expected to trade with a negative bias as crude oil prices continued to rise and geopolitical tensions escalated. He said weak global markets could add further pressure, while a weak dollar could support rupee at lower levels.“Weak global markets may further pressurise the rupee. However, a weak dollar may support the rupee at lower levels. Investors now focus on inflation data from the US and India. USD-INR spot price is expected to trade in a range of Rs 94.70 to Rs 95.15,” he added.The dollar index, which measures the strength of the greenback against a basket of six currencies, was trading 0.03% lower at 98.76.Brent crude, the global oil benchmark, rose 1.41% to USD 99.30 per barrel in futures trade as US-Iran tensions intensified and concerns grew over disruption to oil flows through the Strait of Hormuz.The pressure was also visible in equity markets. BSE Sensex tanked 500.25 points to 75,060.61 in early trade, while NSE Nifty declined 129.40 points to 23,506.10. Foreign institutional investors sold equities worth Rs 123.19 crore on a net basis on Tuesday, according to exchange data.