Commodities
Rupee Weakens Against Dollar Amid Rising Brent Crude Prices
The Indian Rupee opened weaker against the US Dollar on August 19, trading at 95.71 after Brent crude prices edged up to over $92 a barrel.
The spike in oil prices is putting pressure on the rupee as India imports nearly 85% of its energy needs. Analysts from Finrex Treasury Advisors said that the Reserve Bank of India (RBI) will protect a certain level of the currency, but oil companies will continue buying dollars to fund their payables due.
The underlying demand for dollars is 'very high', according to a currency trader at a private-sector bank. The RBI has been selling dollars to prevent any further depreciation in the currency, but its efforts are being offset by the demand from oil companies and other importers.