Rupee continued its downward journey against the US dollar on Tuesday morning, falling 18 paise to 96.38 in early trade. This comes amid concerns around rising crude oil prices and ongoing Middle East tensions, that dragged down market sentiment.Since the Iran war began in late February, rupee has declined by more than 5%, trimming 2.2% in the recent week. In the previous session on Monday, rupee opened at 96.19 before slipping further to the record low of 96.39 against the US dollar. Last week, the currency had breached the 96-per-dollar mark on Friday before settling at an 95.81. Forex traders said that uncertainty in global markets has persisted due to simmering geopolitical tensions involving the US and Iran. They added that high crude oil prices are putting additional strain on emerging market economies such as India, as elevated import costs increase dollar outflows alongside ongoing foreign portfolio investor-related pressure. “We expect the rupee to trade with a negative bias amid a strong dollar and rising US treasury yields. Ongoing geopolitical tensions and FII outflows may also pressure the rupee. However, any intervention by the RBI and certain restrictions on the import of gold and silver may support the rupee at lower levels. USDINR spot price is expected to trade in a range of 96 to 96.60,” Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, said. Exchange data showed that Foreign Institutional Investors remained net buyers for a third consecutive session on Monday, purchasing equities worth Rs 2,813.69 crore.Meanwhile, Dalal Street began the session on a positive note, with benchmark indices gaining 0.3% in early trading. Around 9:55, NSE Nifty50 stood at 23,682.40, up 34.90 points or 0.15%) while BSE Sensex jumped to 75,471.46, adding 156.42 points or 0.21%.
