Rupee slips to 95.29 against dollar amid oil spike and foreign outflows

The rupee weakened 10 paise to close at 95.29 against the US dollar due to rising crude oil prices, strong dollar demand and foreign fund outflows. Market participants await the RBI policy outcome, with the currency expected to remain range-bound

Mumbai: The rupee depreciated 10 paise to close at 95.29 (provisional) against the US dollar on Tuesday, as global crude oil prices jumped and the American currency remained firm amid massive safe-haven inflows. Forex traders said significant foreign fund outflows also weighed on the investor sentiments.

At the interbank foreign exchange market, the rupee opened at 95.16 against the US dollar, then touched an intraday high of 95.03 and a low of 95.31. At the end of Tuesday’s trading session, the rupee was quoted at 95.29 (provisional), down 10 paise from its previous close.

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On Monday, the rupee depreciated 34 paise to close at 95.19 against the US dollar. “We expect the rupee to trade with a negative bias on renewed geopolitical tensions and a surge in crude oil prices. Strength in the dollar may also put pressure on the rupee. However, continued peace talks may prevent a sharp fall,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.

Investors may watch out for the Reserve Bank of India (RBI) monetary policy this week, Choudhary said, adding that the USDINR spot price is expected to trade in a range of 94.90 to 95.50. The RBI Monetary Policy Committee meeting is scheduled for June 3-5. The six-member MPC, headed by RBI Governor Sanjay Malhotra, will announce its decision on June 5.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.12, down 0.08 per cent.

Brent crude, the global oil benchmark, was trading lower by 1.66 per cent at USD 93.40 per barrel in futures trade. On the domestic equity market front, Sensex climbed 382.50 points to settle at 74,649.84, while the Nifty gained 100.95 points to 23,483.55.

Foreign institutional investors offloaded equities worth Rs 3,911.68 crore on a net basis on Monday, according to exchange data. On the domestic macroeconomic front, India’s industrial production expanded by 4.9 per cent in April, while manufacturing output grew 6.2 per cent.

Moreover, according to the latest data released by the Controller General of Accounts on Monday, the government successfully met its fiscal deficit target of 4.4 per cent of GDP for FY26, exactly matching its budget estimate.

Meanwhile, US President Donald Trump on Monday said talks were continuing with Iran at a rapid pace. Trump also said that he has persuaded Prime Minister Benjamin Netanyahu to call off the strike on Beirut, following which the Israeli leader “turned his troops around”.