Rupee Depreciates 7 Paise Amid Rising Oil Prices and Geopolitical Tensions
The Indian rupee depreciated by 7 paise to close at 95.68 against the US dollar on Tuesday, impacted by high crude oil prices and ongoing geopolitical tensions in West Asia.
According to forex traders, the USD/INR pair is likely to trade with a slight negative bias due to rising crude oil prices, lingering tensions in West Asia, and broader dollar support.
The rupee opened at 95.68 against the greenback and traded between 95.64-95.69 during the session before settling at 95.68 (provisional), lower by 7 paise from its previous close.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, said that oil prices will remain a key monitorable for the rupee, inflation, and foreign flows due to Brent crude's rise above USD 90/bbl and the unresolved Strait of Hormuz situation.
Weak global cues and FII selling also weighed on sentiment, with FIIs offloading equities worth Rs 2,535 crore on Monday, their highest selling in three weeks.