Mumbai The effect of uncertainty in global markets was also visible on the Indian currency. The rupee weakened by seven paise to Rs 95.40 per dollar in early trade on Thursday amid ongoing tensions between the US and Iran.
According to foreign exchange traders, investor sentiment remains weak due to no signs of ending the standoff between America and Iran. In the interbank foreign exchange market, the rupee opened at 95.40 per dollar, which is a decline of seven paise compared to the previous closing price.
Earlier on Wednesday, the rupee had closed at 95.33 against the US dollar.
Hormuz crisis increases market concerns
Geopolitical tension is being considered a major reason behind the weakness in the market. Iran has warned to keep the Strait of Hormuz closed until 2029. At the same time, US President Donald Trump has said that America has control over Hormuz.
The Strait of Hormuz is a vital sea route for global energy supplies. In such a situation, the tension related to this may have an impact on investor sentiment and global markets including crude oil.
Dollar index at 100.01
The dollar index, which measures the US dollar's position against six major world currencies, stood at 100.01.
At the same time, the future price of international oil standard Brent crude fell by 1.22 percent to $ 87.89 per barrel.
Sensex-Nifty also declined
Domestic stock markets also remained under pressure in early trade due to weakness in the rupee.
The Sensex fell 152.97 points to 77,813.38, while the Nifty was seen trading at 24,351.15, down 84.80 points.
Foreign investors made big sales
Selling by foreign investors also continued in the Indian market. According to stock market data, foreign institutional investors (FIIs) sold shares worth a net Rs 1,002.50 crore on Wednesday.
Amidst global geopolitical tensions, selling by foreign investors and weakness of the rupee, the market is now keeping an eye on further global developments.
Also read: Share Market Today: Global tensions impact domestic market, Sensex falls 172 points; Nifty also slipped