Rupee slips 2 paise to settle at 94.60 against US dollar

Mumbai, Jun 16 (PTI) The rupee ended 2 paise lower at 94.60 against the US dollar on Tuesday, breaking its two-day gaining momentum amid easing crude oil prices after the West Asia peace agreement.

Forex traders said that before ending with a slight loss, the domestic currency stayed firm, supported by the de-escalation of the US-Iran conflict and the reopening of the Strait of Hormuz. However, the outflow of foreign capital from domestic equities weighed on the Indian currency.

At the interbank foreign exchange, the rupee opened at 94.69 against the US dollar and traded in the range of 94.48-94.71 before settling at 94.60, down 2 paise from its previous close.

“USD-INR spot price is expected to trade in a range of 94.10 to 94.90,” said Anuj Choudhary,

Research Analyst at Mirae Asset ShareKhan.

The rupee strengthened by 60 paise to settle at 94.58 against the US dollar on Monday, after gaining 67 paise in the preceding session on Friday.

Forex traders said that with oil prices moving in India’s favour and foreign inflows remaining supportive, the near-term outlook for the rupee remains positive.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.61, lower by 0.01 per cent.

Brent crude, the global oil benchmark, was trading down 1.68 per cent at USD 81.77 per barrel in futures trade.

“For India, which imports nearly 90 per cent of its oil requirements, lower crude prices are often like a favourable wind behind a ship supporting the rupee,” CR Forex Advisors MD Amit Pabari said.

According to Dilip Parmar, Research Analyst, HDFC Securities, “In the near term, USD-INR is expected to maintain a downward bias, with spot levels likely to gravitate towards 94.10. On the upside, 95.20 is expected to act as a near-term resistance, capping any intermittent corrective moves.” On the domestic equity market front, Sensex rallied 544.15 points to settle at 76,808.48, while the Nifty climbed 135.25 points to 23,989.15.

Foreign institutional investors offloaded equities worth Rs 749.18 crore on a net basis on Tuesday, according to exchange data.

Meanwhile, US Vice President JD Vance will lead the US delegation for the in-person signing of the peace deal with Iran in Switzerland on Friday, President Donald Trump said.

Both Trump and Vance have electronically signed the framework agreement with Iran’s lead negotiator Mohammad Bagher Ghalibaf, according to a senior US official quoted by The New York Times.

The Strait of Hormuz, located between Iran and Oman, is considered one of the world’s most important energy chokepoints, carrying a substantial share of global oil and liquefied natural gas exports. PTI DRR HVA