Indian rupee dips amid Iran-Israel conflict

The currency opened on Monday at Rs22.728 to the UAE dirham, a further dip from the previous closing

Published: Mon 15 Apr 2024, 9:41 AM

By
Web Desk

Indian rupee dipped two paise to Rs83.44(Dh3.67) against the US dollar on April 15. It had closed at Rs83.42(Dh3.67) on April 12. The rupee opened on Monday at Rs22.728 to the UAE dirham, a further dip from the previous Rs22.709 to the dirham.

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On April 5, the country's forex reserves jumped $2.98 billion to hit a fresh peak of $648.56 billion, Reserve Bank of India data shows. Currency analysts said the rupee slide can benefit NRIs in a number of ways, depending on their income and budget.

Asia-Pacific markets have slipped among new developments in the Iran-Israel conflict. Gulf markets slipped slightly on Sunday, with a decline in oil prices on Monday as market participants dialled back risk premiums following Iran's attack on Israel, according to a report by Reuters.

Indian stock markets plummet

The Indian stock market commenced trading on Monday in negative territory, mirroring global concerns over the escalating tensions in the Middle East.

At the opening bell, both the Sensex and Nifty indices plunged, reflecting investor apprehension amidst geopolitical uncertainties.

The Sensex dropped by 887.82 points, or 1.20 per cent, to 73,357.08, while the Nifty declined by 181.75 points, or 0.81 per cent, to 22,337.65.

Across Asia, equities faced downward pressure, reaching a six-week low amid concerns surrounding the Middle East situation, disappointing bank earnings, and expectations of prolonged higher interest rates by the Federal Reserve.

Major benchmarks in Hong Kong, Japan, and South Korea registered declines, while mainland China's energy sector saw modest gains.

Varun Aggarwal, founder and managing director, Profit Idea, told ANI, "Although global markets demonstrated some stability following an unprecedented attack on Israel, tensions remained palpable. Oil prices experienced slight relief amid speculation of contained conflict, with Brent crude stabilizing around $90 a barrel. Conversely, aluminum and nickel prices surged after the imposition of new sanctions on Russian supplies by the US and UK."

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