MUSCAT – Madhusoodanan R, Executive Advisor to the Board at Global Money Exchange, told The Arabian Stories that the exchange rate has climbed amid pressure on the Indian currency from global economic and geopolitical factors.
The rupee opened at 95.92 against the US dollar before declining to 96.15 at the time of reporting.
Madhusoodanan attributed the rupee’s movement to several factors, including higher crude oil prices, strong demand for the US dollar and a rise in the dollar index, which measures the greenback’s strength against a basket of major currencies. The index recently moved above the 100 mark, reaching 101.24.
He said geopolitical developments, including concerns over disruptions linked to the Strait of Hormuz, have also affected global supply chains and added pressure on currencies.
India’s foreign exchange reserves, estimated at around $674 billion, provide some support and give the Reserve Bank of India room to intervene in the foreign exchange market if needed, he added.
The continued outflow of foreign investments from Indian stock markets remains another concern for the rupee, according to the currency expert.
Madhusoodanan said the rupee is expected to trade within a limited range during the week, with markets closely monitoring global oil prices, dollar movements and geopolitical developments.