INR vs USD, April 13: Indian rupee weakens to 93.3 against US dollar amid rising West Asia tensions

The Indian currency lost 48 paise to drop to 93.31 against the US dollar on April 13, according to a PTI report in the morning market session.

Data collected from Investing.com showed that the Indian rupee was trading at around 93.273 as of 9:25 am (IST), compared to 93.07 at the previous market close.

After Friday’s trading session last week, the Indian rupee lost some of its initial gains, closing lower at 92.83 against the US dollar amid the rising risks of global tensions due to the conflict in West Asia.

PTI’s report from April 10 also highlighted that the forex traders in the market said that the rupee was witnessing high volatility with the Reserve Bank of India’s (RBI) overnight positions cap of up to $100 million deadline in focus.

Factors weighing down rupee today

On Monday, April 13, the Indian rupee experienced pressure from forex investors due to a higher demand for the US dollar in the market following failed talks between the United States and Iran over the West Asia conflict.

In cases of heightened uncertainty in the market, global investors often pull their money out of the emerging markets, fuelling further outflows and pressure on the Indian rupee.

Experts said that the dollar index regained its strength after last week’s fall as the geopolitical tensions have escalated in the seventh week of the US-Iran conflict.

Data collected from Bloomberg’s US dollar spot index showed that the greenback was trading 0.37% higher at 99.013 as of 12:04 am (EDT) on April 13, compared to 98.650 at the previous market close.

Along with the US dollar pressure, the rising oil prices due to uncertainty over any potential supply disruptions due to the US blockade in the Strait of Hormuz, weighed down the sentiment in the financial markets.

“We will also begin destroying the mines the Iranians laid in the Straits. Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!,” said Trump in his post. He also said that the negotiations have failed to come to any conclusion as the Iranian authorities are ‘unwilling to give up its nuclear ambitions.’

The global benchmark Brent crude oil prices surged to over $103 per barrel (bbl) during the early market hours on Monday, after US President Donald Trump’s update on the potential peace talks.

As of 9:56 am (IST), the Brent crude oil prices were trading 7.28% higher at $102.14 per bbl, compared to $95.2 per bbl, according to Investing.com data. As India imports majority of its oil from foreign nations, the rise in oil prices further pressured the domestic currency.