Rupee ends lower as markets brace for RBI rate decision

The rupee depreciated 10 paise to close at 93.00 (provisional) against the US dollar on Tuesday, as investors remained on edge ahead of US President Donald Trump’s deadline for the opening of the Strait of Hormuz and the Reserve Bank’s monetary policy review.

Forex traders said the USD/INR pair is trading under pressure, dragged down by unabated withdrawal of foreign capital, a firm dollar, and higher crude oil prices amid a volatile geopolitical situation.

Moreover, market participants will remain watchful of evolving geopolitical headlines and the upcoming RBI monetary policy decision.

At the interbank foreign exchange market, the rupee opened at 93.05 against the US dollar, then lost ground to trade at 93.07, registering a fall of 17 paise from its previous close. During the day, the rupee also touched an intraday high of 92.86 against the greenback.

At the end of Tuesday’s trading session, the rupee was quoted at 93.00 (provisional), down 10 paise from its previous close.

On Monday, the rupee gained 28 paise to close at 92.90 against the US dollar on Monday, following the Reserve Bank’s measures to curb speculative fervour and dampen volatility in the Indian currency.

The RBI has tightened its rules to curb speculative positions and capped banks’ net open positions at USD 100 million.