Rupee Depreciates Amid Crude Price Surge

The Indian rupee has depreciated by 25 paise to reach 95.33 against the US dollar in early trade on Thursday, according to DT Next.

This decline is attributed to several factors, including elevated crude oil prices and persistent demand for the American currency.

Brent crude price crossed the USD 100 mark, and this has raised concerns over India's import bill. For an economy that imports nearly 90% of its crude, every USD 10 rise in oil can add roughly USD 12-15 billion to the annual import bill.

Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, notes that the rupee's move beyond the psychologically important 95 level triggered additional dollar demand and stop-loss activity. However, RBI intervention contained the decline.