Rupee Depreciates by 12 Paise Against US Dollar Amid Geopolitical Risks
The Indian rupee depreciated by 12 paise against the US dollar on Thursday, August 13, closing at 95.45. The currency had opened at 95.40 and traded in a range of 95.35-95.48 during the session.
The decline was attributed to weak domestic markets and persistent foreign fund outflows amid lingering geopolitical risks. Investor sentiment remains fragile due to the delay in the US-Iran deal and the strength of the American currency in overseas markets.
According to Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, 'We expect the rupee to trade with a slight negative bias on the delay in the deal between the U.S. and Iran and a strong dollar.' However, renewed hopes of talks and softening of crude oil prices may support the rupee at lower levels.
The Reserve Bank of India (RBI) may intervene to stabilize the currency, while traders will be watching the US PPI inflation and weekly unemployment claims data for cues.