Global benchmark Brent crude was trading around $100 a barrel on Friday after a sharp two-day gain as Iran’s new Supreme Leader Mojtaba Khamenei vowed to effectively close the Strait of Hormuz. The Strait of Hormuz is a narrow shipping route between Iran and the Arabian Peninsula that serves as one of the world’s most important energy corridors. It deals with a significant share of the global export of oil and liquefied natural gas.
Rupee will remain under pressure on Friday
According to traders, the Reserve Bank of India (RBI) is likely to sell US dollars to ease the rupee due to the impact of rising oil prices worldwide, Reuters reported. On Friday, the rupee opened at an all-time low, falling 12 paise to 92.37 against the US dollar in early trade. It is likely to remain under pressure today, with oil prices the dominant factor shaping sentiment across markets, including currencies, bonds and equities.
The central bank has moderated the decline since the start of the conflict and regularly intervened in the market, Reuters reported, citing traders. RBI’s sharp currency moves are expected to continue as energy prices remain volatile and foreign investors continue to pull money out of local stocks
“Oil prices remained elevated after Iran declared the Strait of Hormuz permanently closed until the crisis is resolved. The dollar index also rose, European and Asian currencies all fell against the greenback,” Finrex Treasury Advisors LLP finance chief and managing director Anil Kumar Bhansali was quoted as saying by PTI.
Moving to the domestic equity market, the Sensex was down 560.06 points or 0.74 per cent at 75,474.36 while the Nifty was down 184.45 points or 0.78 per cent at 23,454.70. According to stock exchange data, foreign institutional investors sold shares worth ₹7,049.87 crore on a net basis on March 12, reflecting growing market concerns over escalating geopolitical tensions in the Middle East.
