Rupee Depreciates 7 Paise Amid Crude Oil Price Rise and Geopolitical Tensions

The Indian rupee depreciated by 7 paise to 95.40 against the US dollar in early trade on Thursday, pressured by rising crude oil prices and lingering geopolitical tensions.

Forex traders pointed out that investor sentiment remains fragile due to the ongoing standoff between the US and Iran, with Tehran warning of keeping the Strait of Hormuz closed until 2029, while US President Donald Trump stated that the Hormuz is under American command.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that despite oil prices hovering near $88 a barrel, the rupee has been backed by the RBI at 95.41-95.45 levels.