Rupee Falls Amid Rising Oil Prices
The Indian rupee fell to 95.42 against the US dollar in early trade on Wednesday, down 6 paise from its previous close.
This decline was attributed to the sharp rise in Brent crude prices towards $90 per barrel, driven by uncertainty over the Strait of Hormuz and concerns about physical supply following reports of attacks on shipping.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that markets are increasingly sceptical about a quick US-Iran agreement, which has contributed to the rise in Brent crude prices.
Bhansali added that oil companies continue to buy US dollars for their daily requirements while the Reserve Bank of India (RBI) supports the rupee at various levels daily. The dollar index was trading at 99.87, up 0.05 per cent.