The Indian rupee saw a 9 paise decline against the US dollar in early trading on Tuesday, landing at 83.53, attributed to a strong US dollar and heightened crude oil prices. This downward trend was exacerbated by negative movements in domestic equities and ongoing foreign fund outflows, impacting investor confidence.

Forex analysts noted that the rupee's opening at 83.51 against the dollar, reaching a low of 83.53, marked a 9 paise drop from its previous close of 83.44 on Monday. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, pointed out that foreign portfolio investors' continued dollar buying and stock selling, driven by risk aversion due to Middle East tensions and rising US yields, further contributed to the rupee's depreciation. Bhansali also highlighted the importance of monitoring the Reserve Bank of India's actions in response to rupee devaluation.

Simultaneously, the dollar index, measuring the dollar's strength against six major currencies, stood at 106.34, up by 0.13%. Brent crude futures surged by 0.53% to USD 90.58 per barrel, influenced by Israel's deliberations on responding to the Iran attack amid escalating Middle East tensions.

In the domestic market, the BSE Sensex dropped by 307.44 points (0.42%) to 73,092.34 points, while the NSE Nifty fell by 76.50 points (0.34%) to 22,196.00 points. Foreign Institutional Investors (FIIs) were net sellers on Monday, selling shares worth ? 3,268.00 crore according to exchange data.

On the macroeconomic front, wholesale inflation in India increased slightly to 0.53% in March from 0.20% in the previous month, driven by higher prices of vegetables, potato, onion, and crude oil. Additionally, India's merchandise exports slightly declined in March to USD 41.69 billion and by 3.11% during the last fiscal year to USD 437.06 billion, primarily influenced by ongoing geopolitical tensions and subdued global trade conditions.

The Indian rupee saw a 9 paise decline against the US dollar in early trading on Tuesday, landing at 83.53, attributed to a strong US dollar and heightened crude oil prices. This downward trend was exacerbated by negative movements in domestic equities and ongoing foreign fund outflows, impacting investor confidence.

Forex analysts noted that the rupee's opening at 83.51 against the dollar, reaching a low of 83.53, marked a 9 paise drop from its previous close of 83.44 on Monday. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, pointed out that foreign portfolio investors' continued dollar buying and stock selling, driven by risk aversion due to Middle East tensions and rising US yields, further contributed to the rupee's depreciation. Bhansali also highlighted the importance of monitoring the Reserve Bank of India's actions in response to rupee devaluation.

Simultaneously, the dollar index, measuring the dollar's strength against six major currencies, stood at 106.34, up by 0.13%. Brent crude futures surged by 0.53% to USD 90.58 per barrel, influenced by Israel's deliberations on responding to the Iran attack amid escalating Middle East tensions.

In the domestic market, the BSE Sensex dropped by 307.44 points (0.42%) to 73,092.34 points, while the NSE Nifty fell by 76.50 points (0.34%) to 22,196.00 points. Foreign Institutional Investors (FIIs) were net sellers on Monday, selling shares worth ? 3,268.00 crore according to exchange data.

On the macroeconomic front, wholesale inflation in India increased slightly to 0.53% in March from 0.20% in the previous month, driven by higher prices of vegetables, potato, onion, and crude oil. Additionally, India's merchandise exports slightly declined in March to USD 41.69 billion and by 3.11% during the last fiscal year to USD 437.06 billion, primarily influenced by ongoing geopolitical tensions and subdued global trade conditions.