Rupee Edges Lower to 90.95 on FII Outflows, Weak Equity Markets

The rupee weakened by 4 paise to 90.95 against the US dollar in early trading on Friday (February 27), weighed down by sustained foreign institutional investor (FII) outflows and a weak trend in domestic equity markets.

At the interbank foreign exchange market, the local unit opened at 90.91 per dollar before slipping to 90.95, marking a decline of 4 paise from its previous close. On Thursday (February 26), the rupee had settled flat at 90.91 against the greenback.

Dollar Index and Crude Prices Offer Support

Forex traders said the downside in the rupee was limited due to a softer US dollar and easing crude oil prices globally.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading 0.09% lower at 97.70.

Meanwhile, Brent crude, the global oil benchmark, dipped 0.07% to $70.70 per barrel in futures trade, helping cushion pressure on the domestic currency.

Equity Markets Under Pressure

Domestic equity benchmarks also opened lower, adding to the negative sentiment. The Sensex fell 364.62 points to 81,883.99 in early trade, while the Nifty declined 117.15 points to 25,379.40.

On the institutional front, exchange data showed that foreign institutional investors offloaded equities worth ₹3,465.99 crore on Thursday, contributing to the cautious market mood.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.