Rupee Depreciates Amid Rising Oil Prices and Global Tensions

The Indian rupee has been under pressure due to rising global crude oil prices and heightened tensions in West Asia. On Wednesday, it closed at ₹95.76 (provisional) against the US dollar, down 2 paise from its previous close.

The rupee's decline was also affected by a sharp drop in domestic equity markets, with Sensex settling 325.78 points lower and Nifty skidding 76.60 points. However, foreign fund inflows lent support to the local unit.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, attributed the rupee's weakness to higher crude oil prices and strong US bond yields. He noted that India has adequate forex reserves and that there is no room for a sharp depreciation.