Rupee Depreciates to 95.33 Against US Dollar Amid Rising Brent Crude Prices
The Indian rupee depreciated by 25 paise to 95.33 against the US dollar in early trade on Thursday, amidst rising concerns over India's import bill.
The depreciation came as Brent crude prices crossed the $100-per-barrel mark, with the global oil benchmark trading marginally lower at $100.98 per barrel in futures trade.
Elevated crude oil prices and persistent dollar demand also weighed on investor sentiments, according to forex traders.
Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, noted that the rupee's move beyond the psychologically important 95 level triggered additional dollar demand and stop-loss activity. However, RBI intervention contained the decline.
Amit Pabari, MD of CR Forex Advisors, said that high oil prices could weigh more heavily on the currency, particularly with FCNR-related dollar inflows no longer available to offset this pressure.