INR vs USD: Indian rupee trades near 95 against US dollar on June 2; check factors impacting currency rates

Investing.com data showed that the Indian rupee was trading 0.10% weaker against the US dollar at 95.08 as of 9:57 am (IST) on Tuesday, compared to around 94.99 at the previous currency market close.

The exchange data also showed that the Indian currency has lost 3.8% of its value in the last three months amid the heightened demand for the benchmark US dollar due to the elevated geopolitical tensions.

Forex traders said that although the USD/INR currency pair opened on a positive note on June 2, the West Asia conflict and the fragile ceasefire deal continue to weigh down the investor sentiment in the global market amid the elevated energy prices.

CR Forex Advisors MD Amit Pabari told the news agency PTI that the market investors are now focusing on two upcoming key events in India, namely the Reserve Bank of India policy decision scheduled to be announced on June 5, and the India-US trade deal.

“Markets will closely monitor any progress on tariff-related issues and broader trade cooperation,” said Pabari.

US dollar movement

During the early market hours on Tuesday, the US dollar was trading higher as global investors were pulling money from the emerging markets to switch their investments towards the safe-haven currency away from other riskier bets.

Bloomberg US dollar spot index (DYX) data showed that the benchmark greenback was trading 0.04% higher at 99.159 as of 12:54 (ET) on Tuesday in the United States, compared to the previous market close.

The rupee was further facing pressure from the continued foreign investor outflow from the Indian market. The FIIs sold ₹3,911.68 crore in a single day on the same cautious sentiment in the market.