MUMBAI, Apr 11 (BNP): The Indian rupee gave up its early gains and ended the session weaker on Friday, declining by 32 paise to settle at 92.83 against the US dollar. The fall came as rising geopolitical tensions, particularly involving the US and Iran, weighed on market sentiment.
Currency markets remained volatile throughout the day, with traders navigating uncertainty linked to global developments. Additional pressure came from regulatory factors, as the deadline for the Reserve Bank of India’s directive limiting banks’ overnight foreign exchange positions to USD 100 million came into effect.
At the interbank foreign exchange market, the rupee initially opened on a stronger note but struggled to hold onto gains as demand for the dollar increased later in the session.
Forex dealers noted that a mix of external risks and policy-driven adjustments contributed to sharp intraday swings. The cautious mood in global markets further dampened confidence, leading to the rupee’s decline by the close.
Market participants are expected to closely monitor geopolitical developments and central bank actions, which will likely influence the rupee’s movement in the near term.
