Rupee Weakens Against Dollar Amid Rising Crude Oil Prices
The Indian Rupee declined against the US dollar on Monday due to firm crude oil prices and a stronger greenback. The local currency settled at 95.28, down 11 paise from its previous close of 95.17 on Friday.
Traders attributed the weakness in the rupee to the rise in Brent crude above USD 84, which is expected to impact India's trade deficit. However, Foreign Institutional Investors (FIIs) inflows provided some support to the currency.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, noted that the rupee 'marginally dipped' from last Friday's closing due to the rise in Brent crude and expected trade deficit impact. He added that FPI inflows are providing support to the rupee.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, stated that the rupee declined on Monday due to uncertainty over a deal between the US and Iran and an overnight surge in crude oil prices. He also noted that the US dollar strengthened from lower levels, but positive domestic markets cushioned the downside.