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Rupee slips as global risk-off mood and strong dollar weigh
The rupee weakened today, pressured by a global risk-off sentiment and a firm US dollar. Markets moved cautiously as investors sought safer assets, leaving emerging-market currencies like the rupee vulnerable.
Key drivers behind the fall
- Strong US dollar: A firmer dollar reduced demand for riskier currencies, including the rupee.
- Global risk aversion: Investors shifted to safe-haven assets, tightening flows into emerging-market FX.
- Crude oil rebound: An overnight recovery in oil prices added pressure by raising import cost worries for an oil-importing economy.
What prevented a deeper slide
Sales of US dollars by state-run banks helped cushion the rupee’s downside. An analyst noted these interventions limited losses and provided some stability amid volatile conditions.
What to watch next
Traders will keep an eye on the US dollar’s trajectory, global risk sentiment, and crude oil prices. Domestic factors — including central bank signals and foreign fund flows — will also shape near-term rupee movement.