The Indian rupee dipped by two paise to Rs83.44 against the US dollar on April 15, reflecting heightened market volatility amidst escalating tensions in the Middle East. The rupee’s decline from its previous close of Rs83.42 on April 12 was compounded by a further dip in its opening against the UAE dirham, falling to Rs22.728 compared to the previous Rs22.709.
The slide in the rupee comes amidst global concerns over the Iran-Israel conflict, which has impacted markets across the Asia-Pacific region. Gulf markets also experienced slight declines, influenced by a drop in oil prices as investors recalibrated risk premiums following Iran’s attack on Israel.
The Indian stock market mirrored these concerns, opening in negative territory on Monday. Both the Sensex and Nifty indices plummeted at the opening bell, with the Sensex dropping by 887.82 points, or 1.20 percent, to 73,357.08, and the Nifty declining by 181.75 points, or 0.81 percent, to 22,337.65.
READ:Gold Prices Surge in UAE Amidst Iran-Israel Conflict
Across Asia, equities faced downward pressure, reaching a six-week low amid uncertainties 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 China’s energy sector saw modest gains.
Varun Aggarwal, founder and managing director of Profit Idea, commented on the market dynamics, noting that while global markets showed some stability after the attack on Israel, tensions remained palpable. He highlighted slight relief in oil prices amid speculation of contained conflict, with Brent crude stabilizing around $90 a barrel. However, Aggarwal pointed out that aluminum and nickel prices surged following the imposition of new sanctions on Russian supplies by the US and UK.
As geopolitical tensions continue to unfold, market participants are closely monitoring developments and adjusting their strategies to navigate through uncertain times, with the Indian rupee and stock markets remaining sensitive to geopolitical events and global market dynamics.
