USD/INR: Rupee Dramatic Sell Off Amid Geopolitical Risks

India’s domestic currency, Rupee witnessed a dramatic sell off against the greenback amid rising geopolitical tensions in the Middle East. At the end of the previous trading week the value of Rupee depreciates by 35 paise on the interbank market, and settled lower at 71.76 against the US dollar.

During the early Asia trading hours, the USD/INR exchange rate was seen quoted within a range of 71.76 – 72.17.

At the end of last week, the death of the most powerful Iranian commander by US airstrike had some reverberation through the foreign exchange market. The safe haven bids have been pushing the US dollar higher across the board, while the price of the precious metal Gold soars to 4 months high. The dollar index settled on Friday at 96.90.

Elsewhere, foreign institutional investors (FIIS) were net buyers of shares in the local equity market worth Rs 1263.05 crore; according to the National Stock Exchange of India data published at the end of Friday’s trading session. On the other hand, Domestic institutional investors were net sellers, dumping equities worth Rs -1029.2 crore.

Elsewhere, a report published by Deutsche Bank revealed that RBI’s easing efforts will help revive the sluggish economic growth in 2020. According to the same report, Indian economy is expected to grow to $7 trillion by 2030.

Moving forward, risk sensitive currencies and emerging market currencies might continue to feel the pressure amid escalating geopolitical tensions.

The domestic benchmark equity index NIFTY 50 traded near its all-time high and settled at 12,226 by the end of Friday’s trading session. During early Asia trading hours NIFTY 50 was seen quoted lower around the 12,015 level amid rising geopolitical tensions.

The Indian 10-year government bond yield was seen quoted at 6.56% in morning trade compared with its previous close of 6.52%. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.