Rupee slips to 91.50 per US dollar

Metro India News | mumbai

The Indian rupee fell sharply by 42 paise to close at 91.50 (provisional) against the US dollar on Monday, weighed down by escalating geopolitical tensions and a spike in global crude oil prices. The decline followed military strikes by the US and Israel on Iran over the weekend, triggering risk aversion across global markets and boosting demand for the dollar.

In the interbank foreign exchange market, the rupee opened at 91.23 and slipped to an intraday low of 91.65 before settling at 91.50, compared to Friday’s close of 91.08, when it had already fallen 17 paise.

Forex traders attributed the fall to heavy foreign institutional investor (FII) outflows and sharp losses in domestic equities. Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said the rupee weakened nearly half a percent amid global risk-off sentiment. He noted that rising crude prices and continued FII selling are likely to keep pressure on the currency, although any diplomatic developments or central bank intervention could provide support.

Anil Kumar Bhansali of Finrex Treasury Advisors LLP said the Reserve Bank of India intervened around the 91.46–47 levels, helping contain further losses.

Meanwhile, Brent crude rose over 8 percent to $78.71 per barrel after intensified strikes, including actions following the killing of Ayatollah Ali Khamenei. Higher oil prices pose a concern for India, which imports nearly 85 percent of its fuel requirements.

Domestic stock markets also ended lower. The BSE Sensex dropped 1,048 points to 80,238.85, while the Nifty 50 fell 312 points to 24,865.70. Analysts said currency movement will largely depend on crude trends, geopolitical developments, and foreign fund flows in the coming sessions.