Geopolitical tensions keep pressure on Rupee

Mumbai: The rupee declined by 7 paise to close at 75.11 against the US currency on Thursday as geopolitical tensions pushed investors towards safe-haven assets.

Forex traders said sustained foreign fund outflows and elevated crude oil prices too weakened the rupee. At the interbank foreign exchange, the rupee opened at 74.94 against the American dollar but later dropped to a low of 75.18 against the greenback. The local unit was quoted at 75.11 at close, down 7 paise from the previous close. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.15 per cent higher at 95.84.

"The local unit is struggling near the psychological level of 75 as safe haven dollar remained in demand amid ongoing speculation of Fed tightening in March meetings along with geopolitical worries. Spot USDINR expected to find support in the range of 74.90 to 75, while 75.70 remains the biggest hurdle," Dilip Parmar, research analyst, HDFC Securities.

The White House on Wednesday said that a Russian invasion of Ukraine can happen anytime now, as President Joe Biden announced plans to dispatch vice-president Kamala Harris and Secretary of State Tony Blinken to attend the Munich conference to meet world leaders and unite them against Moscow. White House Press Secretary Jen Psaki anticipated that an attack could take place at any time.