Business Desk – Indian Rupee Vs Dollar: On Thursday (April 23), the Indian Rupee opened at 94 against the US Dollar. There is a fall of 20 paise compared to the closing level of 93.80 on Wednesday (April 22). So far this week, the currency has fallen by about 1%. It has moved away from its recent high of 92.50 per dollar. This level was achieved after the support measures implemented by the Reserve Bank of India late last month and early April.
Market participants indicated that the rupee came under pressure immediately upon opening. Some traders expected that the level of 94 per dollar would be broken at the beginning of the session. The recent rise from 95 to 92.50 is now being viewed by some market observers as only a temporary correction rather than a permanent trend reversal.
Traders said the central bank has been intervening in the foreign exchange market during recent sessions, selling dollars in an effort to curb volatility. However, continued demand for dollars from oil marketing companies, as well as limited supply of dollars, continues to put pressure on the currency.
Although such interventions have slowed the pace of the rupee’s decline, they have not succeeded in reversing the broader trend of currency weakness. Global factors have also contributed to the rising pressure> Brent crude oil prices climbed above $100 a barrel for the first time in more than two weeks.
Prices closed at $103.24 on Wednesday (April 23). The surge comes after stalled talks between the US and Iran, as well as existing sanctions affecting shipments through the Strait of Hormuz. These are factors that have raised concerns about potential supply disruptions.
Analysts suggest that continued strength in crude oil prices could increase inflationary pressures. Given India’s heavy dependence on oil imports, this may put further downward pressure on the rupee.
