Rupee Depreciates Amid Rising Brent Crude Prices

The Indian rupee depreciated by 38 paise to close at 95.46 against the US dollar on Thursday, driven by concerns over import costs due to rising Brent crude prices.

Brent crude breached the $102 threshold, causing worries about India's oil imports, which are largely priced in dollars.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, noted that the rupee is currently facing opposing forces, with downside pressure driven by foreign portfolio outflows resuming after a positive July and August.

Banerjee also mentioned that while the Reserve Bank's active presence in the market and strong domestic growth are supporting the rupee, elevated US yields and crude oil prices above $100 are putting downward pressure on it.