Rupee Falls 12 Paise Amid Stronger Dollar and Rising Crude Oil Prices
The Indian Rupee depreciated by 12 paise to close at 95.74 against the US dollar on Wednesday, weighed down by the broad strength of the American currency and a slight recovery in crude oil prices from lower levels.
Forex traders said the dollar strengthened on hawkish comments from US Federal Reserve officials, raising expectations of a rate hike by the US Fed in 2026. However, positive domestic markets supported the rupee at lower levels.
The rupee opened at 95.58 against the US dollar and touched an intraday high of 95.57 against the American currency in intraday trade. It saw an intraday low of 95.76 before ending the trading session on Wednesday at 95.74 (provisional) against the American currency, lower by 12 paise from its previous close.
Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan, said that hopes of a diplomatic solution between the US and Iran amid indirect talks at the UNGA may improve global risk sentiment, while overall weakness in crude oil prices may also support the rupee. However, a strong dollar and any fresh tensions between the US and Iran may cap sharp upside.