Rupee inches closer to 94: Currency falls 20 paise to 93.96 per US dollar in early trade

Rupee on Wednesday took another fall towards the 94 per US dollar mark, tumbling 20 paise in early trade to reach 93.96 against the greenback. This follows a weak run for the currency this month. Earlier on Tuesday, the currency had already slipped by 23 paise to settle at 93.76, pressured by a stronger US dollar against major currencies and elevated global crude oil prices, which weighed on investor sentiment.Rupee has been facing pressure due to foreign fund outflows, with forex traders citing uncertainty linked to the West Asia crisis as a key factor behind the sustained weakness. The currency had already shown signs of strain earlier in the week, inching closer to the psychological 94-level against the US dollar for the first time on Monday, before recovering to close flat at 93.53."Persistent FPI outflows continue to pressure INR. A strong US dollar is keeping emerging market currencies weak, and the INR has weakened by about 4.5 per cent during the month. The rupee range for Wednesday is expected to be 93.65 to 94.25," Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said. Meanwhile, Dalal Street remained strong with benchmark indices jumping by over 1% each. As of 9:40 am IST, NSE Nifty50 was trading at 23,212.55, up 300.15 or 1.31%. BSE Sensex was also trading in green, gaining almost 900 points or 1.22% to trade at 74,969.91.Uncertainity around the Middle East tensions have also triggered volitality in financial markets. The plunge comes after the United States had put forward a 15-point proposal to Iran aimed at ending the ongoing conflict. US President Donald Trump said Washington and Tehran are “currently in negotiations” and suggested that Iran is eager to strike a peace deal, even as the Islamic Republic has denied holding any direct talks with the United States.