Rupee falls 10 paise to 90.15 against US dollar in early trade
Mumbai (PTI): The rupee depreciated 10 paise to 90.15 against the US dollar in early trade on Tuesday, as dollar demand from corporates, importers and foreign portfolio investors dented investors' sentiments.
Forex traders said investors are in a wait and watch mode and market participants are waiting for clarity from the US FED before taking decisive positions.
At the interbank foreign exchange, the rupee opened at 90.15 against the US dollar, down 10 paise from its previous close.
On Monday, the rupee settled at 90.05 against the US dollar. Market is focussed on the stance the US Federal Reserve Chief chairman Jerome Powell will deliver in the US FED meeting this week.
"Any shift in tone could quickly change the direction for global currencies," CR Forex Advisors MD Amit Pabari said.
"With the dollar turning softer—driven by rising expectations of a Fed rate cut—and the RBI actively managing liquidity and hope of a trade deal, the rupee now looks set to settle into a period of consolidation within a broad 89.20–90.30 range," Pabari added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent lower at 99.04 Brent crude, the global oil benchmark, was trading lower by 0.19 per cent at USD 62.37 per barrel in futures trade.
"A combination of softer local equities, tepid Asia FX and pre-FED caution, higher US yields are weighing over rupee even as the dollar index holds itself near 99 levels.
"FPI equity outflows continue while uncertainty around US-India trade talks beginning on Wednesday are keeping the US dollar well bid while RBIs presence keep rupee well entrenched into a small range," said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
India and the United States will commence three-day talks on the first phase of their proposed bilateral trade agreement here from December 10.
On the domestic equity market front, the benchmark sensitive index Sensex was trading lower by 381.91 points at 84,720.78, while the Nifty was down 139.55 points at 25,821.00.
Foreign Institutional Investors sold equities worth Rs 655.59 crore on Monday, according to exchange data.
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Stopping Iran of greater importance than oil prices: Trump
Washington (PTI): US President Donald Trump on Thursday said stopping the “evil empire” in Iran was of greater importance to him than oil prices, which have been ruling high since the US and Israel launched a war on Iran on February 28.
Iranian attacks on ships and oil infrastructure in West Asia have pushed crude prices above USD 100 a barrel.
“The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money. BUT, of far greater interest and importance to me, as President, is stopping an evil Empire, Iran, from having Nuclear Weapons, and destroying the Middle East and, indeed, the World. I won’t ever let that happen,” Trump said in a post on Truth Social.
Launched on February 28, Operation Epic Fury against Iran has divided political opinion in the US, with Democrats demanding public hearings with testimony from top Trump administration officials.
White House officials, including Secretary of State Marco Rubio, have held classified briefings with lawmakers since the attacks on Iran began. However, there have been claims that Trump has been sending mixed signals on the progress achieved in the war.
"Here we are well into the second week, and it is still the case that the Trump administration cannot explain the reasons that we entered this war, the goals we're trying to accomplish, and the methods for doing that," Democrat senator Elizabeth Warren was quoted as saying after a classified briefing.
White House press secretary Karoline Leavitt, in a post on X, accused the “left-wing media” of pushing a “fake narrative” about mixed messaging about the objectives of Operation Epic Fury.
“From the beginning, President Trump and his entire team have consistently laid out clear objectives to the American people about what the US Military seeks to accomplish through these ongoing successful major combat operations,” Leavitt said.
“Destroy the terrorist Iranian regime’s missiles and raze their missile industry to the ground. Annihilate the terrorist Iranian regime’s navy. Ensure the regime’s fellow terrorist proxies can no longer destabilise the region and attack our forces; Guarantee the terrorist Iranian regime cannot obtain a nuclear weapon,” Leavitt said, spelling out the objectives of Operation Epic Fury.
Extending support to the war, Senate Majority Leader John Thune told reporters in the Capitol on Tuesday, the war could be "generational in terms of its impact."
“Not only for that region, but for the entire world, because they continued – Iran – to be the largest state sponsor of terrorism in the world. They are on the way to nuclear capability, and they're holding that entire region hostage and American interests as well,” Thune said at a weekly press conference.
"So I think this was an important mission to accomplish, and hopefully it'll be accomplished soon,” Thune said.
