The Indian rupee concluded Friday’s trading session down by 7 paise, settling at a provisional 88.03 against the US dollar. This depreciation was largely attributed to prevailing trade tensions and a climate of global uncertainty.
However, forex traders noted that a resurgence of foreign fund inflows into the Indian markets, coupled with a dip in crude oil prices, played a crucial role in preventing a sharper decline of the domestic currency.
In the interbank foreign exchange market, the rupee began the day just below the 88-mark at 87.91 against the greenback. It managed to touch an intraday high of 87.75 before eventually closing at 88.03, reflecting its 7-paise loss from the previous session.
For context, the rupee had shown resilience on Thursday, gaining 12 paise to finish at 87.96 against the US dollar, marking its second consecutive session of gains.
Globally, the dollar index, which measures the US dollar’s strength against a basket of six major currencies, was observed trading 0.11% lower at 98.22.
Meanwhile, the international oil benchmark, Brent crude, saw its futures trading 1.10% lower, priced at $60.39 per barrel.
This currency movement also coincided with a broader geopolitical discussion. India recently reaffirmed its strategy of ‘broad-basing and diversifying’ its energy sources to adapt to market conditions. This statement came shortly after former US President Donald Trump claimed that Prime Minister Narendra Modi had assured him that India would cease its procurement of Russian crude oil.
India’s continued imports of Russian petroleum products, despite Western sanctions, have been a significant point of discussion, impacting relations between New Delhi and Washington.
Responding to queries regarding Trump’s remarks, External Affairs Ministry spokesperson Randhir Jaiswal stated he was unaware of any such phone conversation. He emphasized that India’s oil purchasing decisions are guided by the imperative to safeguard the interests of Indian consumers in a volatile global energy landscape.
Jaiswal further elaborated, saying, “Ensuring stable energy prices and secured supplies have been the twin goals of our energy policy. This includes broad-basing our energy sourcing and diversifying as appropriate to meet market conditions.”