Rupee Falls Amid Firm Oil Prices and West Asian Negotiations
The Indian rupee declined by 11 paise to settle at 95.28 against the U.S. dollar on August 10, amid firm crude oil prices and a lack of breakthrough in talks in West Asia.
Lack of any progress in negotiations in West Asia put additional pressure on the local unit, while FII inflows provided some support, according to forex traders.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, stated that 'Rupee marginally dipped from last Friday's closing of 95.17. The slight weakness was due to the rise in Brent crude above $84 and the consequent expected impact on trade deficit.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, noted that traders may remain cautious ahead of U.S. inflation data this week, with USD INR spot price expected to trade in a range of ₹95-95.60.