Dollar Strength Weighs on Rupee Amid Global Market Volatility

The Indian rupee ended lower against the US dollar on Thursday, depreciating by 9 paise to close at ₹95.79 per dollar in the foreign exchange market.

The decline follows the previous session’s weakness and reflects ongoing pressure on emerging market currencies amid global economic uncertainty and a firm US dollar.

The US Dollar Index, which tracks the greenback’s performance against a basket of six major global currencies, was trading at 99.21 during intraday trade. A stronger dollar typically exerts downward pressure on currencies such as the rupee by increasing demand for dollar-denominated assets.

Currency market participants noted that fluctuations in crude oil prices, foreign institutional investor activity, and global risk sentiment continue to influence the rupee’s movement. Rising energy costs remain a key concern for India, one of the world’s largest crude oil importers, as higher import bills can impact the domestic currency.

The rupee’s depreciation comes amid broader volatility in global financial markets, where investors are closely monitoring geopolitical developments, inflation trends, and signals from major central banks regarding future monetary policy.

Analysts believe that the rupee’s near-term direction will depend on a combination of factors, including the trajectory of the US dollar, crude oil price movements, capital flows, and domestic economic indicators.

Despite the modest decline, market experts expect the Reserve Bank of India (RBI) to continue monitoring currency movements closely to ensure orderly market conditions.