Rupee Depreciates to 95.79 Against Dollar Amid High Crude Prices

The Indian rupee depreciated by 27 paise to 95.79 against the U.S. dollar on September 11, driven by high crude oil prices and foreign portfolio outflows.

According to Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, 'the pressure continues' for the rupee, which is in an uptrend beyond 95 due to costly oil and foreign portfolio outflows. He predicts that the rupee could reach 96, with 95 acting as support.

Banerjee noted that while record foreign exchange reserves, active Reserve Bank intervention, and robust domestic growth provide crucial support, rising global yields and crude prices above $100 continue to weigh heavily on India's import bill. Investors are watching U.S. and Indian inflation data for further cues.