Rupee weakens to 93.77 as dollar strengthens on US data

The rupee depreciated to 93.77 against the US dollar in early trading on Thursday, extending losses from the previous session. The currency opened at 93.73 in the interbank foreign exchange market before weakening further during the day's trade, losing 6 paise from Wednesday's close of 93.71.

Forex market participants attributed the rupee's decline to renewed strength in the US dollar, driven by latest inflation and employment data from the United States that have pushed Treasury yields higher. The stronger greenback has pressured emerging market currencies broadly, including the rupee.

Despite the intraday weakness, several factors may provide a cushion for the rupee in coming sessions. Declining crude oil prices are expected to ease import costs and support the currency, while strong domestic equity markets continue to attract foreign portfolio investment. This steady flow of foreign capital has underpinned the rupee's underlying strength in recent weeks.

Analysts note that if supportive factors persist, the USD/INR pair could extend its decline toward 93.50, with the 93.00 level emerging as a key technical target. Conversely, any further appreciation of the dollar index could exert renewed pressure on the rupee and reverse recent gains.