Rupee Dips Below 96 Amid Crude Oil Price Surge
The Indian rupee depreciated by 27 paise to 95.79 against the US dollar in early trade on Friday, driven by high crude oil prices and foreign portfolio outflows.
According to Forex traders, while record foreign exchange reserves, active Reserve Bank intervention, and strong domestic growth provide crucial support, rising global yields and crude trading above USD 108 continue to weigh heavily on the country's import bill.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said that for the rupee, 'the pressure continues' and it remains in an uptrend beyond 95 due to costly oil and foreign portfolio outflows. He added that with crude above USD 100 and global yields rising, the import bill is the dominant force in the near term.