INR vs USD, April 9: Indian rupee trades at 92.6 against US dollar as investors grow wary over West Asia crisis

According to a PTI report, the forex traders entered a wait-and-watch mode on Thursday rather than taking a strong directional positioning, as the situation in West Asia remains fragile due to the Israeli attacks despite US President Donald Trump’s two-week ceasefire deal with Iran.

Investing.com data showed that the Indian rupee was trading 0.36% higher at 92.674 against the US dollar as of 11:10 am (IST) on Thursday, compared to 92.342 at the previous market close.

Early hours on Wednesday, Trump announced a two-week ceasefire deal with Iran in exchange for safe passage for crude oil through the Strait of Hormuz, which brought a temporary relief to the markets.

However, Israel launching military strikes for Lebanon and reportedly killing at least 182 people has put additional pressure across the financial markets.

“The fragile ceasefire could be jeopardised by the renewed Middle East tensions as Israel struck Lebanon and Iran warned of moving out of the ceasefire if strikes against Lebanon continued,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, told PTI.

Dollar under pressure

Although the US dollar prices fell to near 98 levels, the rates rebounded due to rising demand for the global currency despite the pressures from the escalating West Asia situation.

Data collected from Bloomberg’s US dollar spot index showed that the greenback was trading 0.09% lower at 99.047 as of 1:30 am (EDT) on April 9, compared to 99.133 at the previous market close.

Will rupee stabilise at 92-93 range?

Chairman of the Prime Minister’s Economic Advisory Council (EAC), S Mahendra Dev, on Wednesday said that the Indian rupee is expected to stabilise around the 92–93 level against the US dollar and expressed optimism that foreign investment flows will improve in the near future over geopolitical easing, reported the news agency.

“Rupee is stabilising around 92-93. Because of global war-related headwinds and FII withdrawals, there was pressure, but despite these odds, the rupee will stabilise at these levels. One should not worry,” he said on the sidelines of a Bharat Chamber of Commerce event.

S Mahendra Dev also acknowledged that the domestic currency has been facing pressure due to global uncertainties, including the West Asia conflict and the withdrawal of foreign institutional investors.