Rupee Depreciates by 7 Paise as Crude Oil Prices Rise
The Indian rupee depreciated by 7 paise to close at ₹95.68 against the US dollar on Tuesday, weighed down by elevated crude oil prices and lingering geopolitical tensions in West Asia.
Forex traders believe that the USD/INR pair is likely to trade with a slight negative bias due to the delay in the deal between the US and Iran, rising crude oil prices, and broader dollar support.
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, as Brent crude rose above $90/bbl and the reopening of the Strait of Hormuz remains unresolved.
The dollar index was trading at 99.60, down 0.04%, while Brent crude futures were higher by 0.01% at $90.88 per barrel. Khemka also noted that weak global cues and FII selling weighed on sentiment, with FIIs selling equities worth ₹2,535 crore on Monday.