May 8 (BNP): The Indian rupee weakened on Friday, slipping 25 paise to close at 94.47 (provisional) against the US dollar, after posting gains in the previous two trading sessions. The decline came as fresh geopolitical tensions between the United States and Iran weighed on investor sentiment.
Forex market participants said concerns intensified after reports of renewed conflict-related developments around the Strait of Hormuz, a key global oil transit route. While Iran accused the US of violating a ceasefire agreement, the US maintained that the ceasefire remained in place despite ongoing strikes and rising tensions in the region.
The uncertainty in the Middle East also impacted global oil markets. Brent crude prices, which had eased earlier to around USD 98 per barrel following hopes of a ceasefire, edged higher again to nearly USD 100 per barrel as investors reassessed the stability of supply routes and the possibility of prolonged tensions.
Traders noted that rising crude prices and geopolitical risks contributed to volatility in currency markets, keeping pressure on emerging market currencies, including the rupee.
Overall, sentiment remained cautious as global developments continued to influence currency movements and energy price trends.
Leave a Reply