Rupee remained under pressure against the US dollar on Tuesday, slipping 4 paise to 96.39 in early trade as higher crude oil prices and continued foreign investor selling weighed on the currency.The currency, however, found some support from gains in domestic equities and a softer dollar. Earlier on Monday, rupee had ended at 96.35 against the US dollar after losing 10 paise.Forex traders said the domestic currency opened at 96.29 at the interbank foreign exchange before falling to 96.39.“The Reserve Bank has been protecting the rupee from its fall at 96.33 but the demand of dollar from FPIs and oil companies has not come down despite oil falling to $100.63 per barrel and dollar index to 102.12,” Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said.The pressure on the rupee comes even as Brent crude was trading at $100.6 per barrel in futures trade, up 0.23 per cent. The dollar index, which tracks the greenback against a basket of six currencies, was also down 0.04 per cent at 102.12.Dalal Street provided a positive backdrop, with the Sensex gaining 120.22 points to 72,535.41 in early trade. The Nifty rose 47.15 points to 22,603.10.However, foreign investor flows remained a drag. Foreign Institutional Investors (FIIs) sold equities worth Rs 4,699.14 crore on a net basis on Monday, according to exchange data.Meanwhile, the Reserve Bank’s Monetary Policy Committee is in the middle of its three-day meeting, which began on Monday. The MPC is likely to raise rates by 25 basis points, in line with the central banks’ hawkish stance amid escalating conflict in West Asia and the risks it poses to domestic inflation.The RBI last raised the repo rate in February 2023, increasing it by 0.25 per cent to 6.50 per cent. It then kept the rate unchanged through 2023-24 before starting its rate-cut cycle in 2025. The policy repo rate currently stands at 5.25 per cent.
