Rupee Falls Amid Crude Surge, Geopolitical Tensions
The Indian Rupee depreciated by 10 paise to 94.66 against the US dollar in early trade on Tuesday, September 8.
Surging Brent crude prices near USD 97/bbl and Middle Eastern geopolitical friction dampened investor confidence, causing the rupee to fall.
However, RBI intervention through dollar sales and strong foreign-currency inflows under special schemes helped keep the rupee range-bound, limiting its decline.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that the RBI's intervention has been crucial in preventing higher oil prices from translating into a weaker rupee.
Bhansali predicted that the rupee will stay within a range of 94.00 to 94.75 as crude oil prices remain near USD 97, while the dollar index fell to 98.74 and RBI continues to sell USD.