The Indian rupee has declined 17 paise to 92.71 against the US dollar on Thursday after four sessions of gains.
Rupee, like the majority of the Asian currencies, has dipped around 0.11 per cent from its previous close of 92.58 against the US dollar.
The loss in value was pushed by the strong US dollar, which gained higher as investors remained concerned over the longevity of the ceasefire and commitment by the US, Israel and Iran.
While a ceasefire between Iran and Israel remains, Israeli Prime Minister Benjamin Netanyahu has ordered fresh attacks on Lebanon, saying it was not part of the ceasefire deal.
Also, the prices of essential commodities and other utilities have surged in domestic markets due to volatility shown by the rupee against the US dollar.
Investors are keenly observing the key US data, including weekly jobless claims and personal consumption expenditures, the US Federal Reserve’s preferred inflation gauge.
Besides the Indian rupee, other major Asian currencies, including the Indonesian Rupiah and Philippine Peso also declined around 0.4 per cent each due to escalating tensions in West Asia. Also, South Korean currency Won witnessed a decline of 0.2 per cent.
The Malaysian Ringgit and Taiwanese Dollar also fell by 0.16 per cent each, while the Japanese Yen declined 0.1 per cent and the Chinese Renminbi edged lower by 0.05 per cent.
The dollar index, which measures the strength of US currency against other major world currencies, was at 99.04, down 0.10 per cent from the 99.13 recorded on Wednesday.
The oil, precious metals, and stock market, except for defence and energy sectors, are fluctuating due to the fragile ceasefire between warring parties that could potentially evolve with a sudden change in the region.
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