The rupee has weakened by four paise against the US dollar amid ongoing global uncertainties affecting trade in worldwide markets.
The rupee fell 4 paise to 90.95 against the US dollar in early trade on Friday.
A range of factors are contributing to the constant decrease, including rising global crude oil prices and fund outflows toward China, South Korea and Taiwan.
The Iran-US tensions are affecting prospects for global stability and international trade, since 30 per cent of global trade passes through the Strait of Hormuz and the Gulf region.
The constant negative performance of the domestic market, which is under pressure amid rising AI challenges, has also weighed on sentiment.
However, a weaker greenback and a slight dip in global crude oil prices prevented a sharper decline in the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 90.91 against the US dollar before slipping to 90.95, down 4 paise from its previous close.
The rupee settled on a flat note at 90.91 against the US dollar at the close of market proceedings on Thursday.
“Despite FPIs selling dollars, there was good dollar buying yesterday (Thursday), which took the rupee from 90.80 to 90.91.
Unlike most Asian currencies, the rupee has not been able to take advantage of falls in the dollar index, while any gains in the index see the rupee falling,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Furthermore, the dollar index, which gauges the greenback’s st
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