Rupee vs Dollar: Indian currency trades lower at 93.86 against US dollar on March 25; check details

Data collected from Investing.com showed that the Indian rupee was trading 0.16% or 15 paise lower at 93.861 as of 11:08 am (IST), compared to the previous market close level of 94.013. This comes after the Indian currency hit a fresh record low for three consecutive trading sessions till March 24.

During the trading session on Tuesday, the Indian currency surged to another record high of 94.141 due to the uncertainty related to the West Asia conflict and a stronger demand for the dollar in the market.

Factors affecting Indian rupee

The Indian currency on Wednesday was trading lower due to a weaker US dollar rate in the global market. Although the data showed that the foreign investor outflow from the Indian markets maintained its trend, the US dollar rate dropped amid cooling oil prices.

According to the Bloomberg US dollar spot index, the greenback was trading 0.09% lower at 99.346 as of 1:38 am (EDT) on March 25. A PTI report suggested that, with the falling dollar rates and oil prices on Wednesday, and the domestic markets opening higher, the Indian rupee was prevented from a sharper fall in the early market.

Investing.com data suggests that the Brent crude oil prices were trading 3.54% lower at $96.65 per barrel (bbl) as of 11:29 am on March 25, compared to $100.23 per bbl at the previous market close.

The oil prices cooled down to their current levels after US President Trump said that the United States and Iran are engaged in talks for a potential peace deal marking the end of the conflict soon. However, no confirmations have been released from Iran’s side so far.

NSE data as of the market close on March 24 showed that the foreign investors (FII/FPI) have sold 6,436.77 crore in net value in the Indian capital markets on NSE, and overall sold ₹8,009.56 crore of assets in a single day.

FIIs taking out money from emerging markets like India is primarily due to the demand for investors shifting to more secure US treasuries amid volatile and uncertain times in the market.

“Exporters at current level of 93.90 may hedge for up to one month while importers may buy all dips they get,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, told PTI.

Analysts predicted that the expectation of the Indian rupee’s rise to 92.80 is currently the sentiment of market investors as people eye towards the Reserve Bank of India stepping in ahead of the end of the financial year for some currency control, according to the agency report.