Rupee Declines as Crude Oil Prices Firm Up
The rupee declined by 11 paise to settle at 95.28 against the US dollar on Monday, as firm crude oil prices and a strong greenback weighed on the local currency.
Lack of progress in talks in West Asia added to the pressure on the rupee, while foreign institutional investor inflows provided some support, according to forex traders.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, noted that the rupee's slight weakness was due to the rise in Brent crude above USD 84 and its expected impact on trade deficit. However, FPI inflows have been positive in July and increasing in August, supporting the rupee.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said that traders may remain cautious ahead of the US inflation data this week, with the USDINR spot price expected to trade in a range of Rs 95-95.60.