The rupee slipped by 11 paise to 96.36 against the US dollar in early trading on Wednesday, weighed down by rising crude oil prices and increased geopolitical tensions. Demand for the US dollar also strengthened as investors shifted toward safe-haven assets.
Forex traders noted that concerns over the safety of oil shipments passing through the Red Sea and the Strait of Hormuz are continuing to keep crude oil prices elevated.
They further said that threats from Yemen’s Houthi rebels targeting vessels, along with ongoing tensions between the US and Iran, have maintained a geopolitical risk premium in the market.
In the interbank foreign exchange market, the rupee opened at 96.36, marking a decline of 11 paise compared to its previous close.
business-standard