Rupee Extends Downtrend as Risk Aversion and Crude Oil Prices Weigh
The Indian rupee continued its downward trend on Friday, settling at 95.57 against the US dollar after paring most of its initial losses. The rupee had opened on a negative note but recovered slightly due to suspected RBI intervention and profit booking in crude oil prices.
Forex traders attributed the decline in the rupee to risk aversion in global markets and elevated crude oil prices, which weighed heavily on the currency. The rupee closed lower for the fifth consecutive session on Friday, with HDFC Securities' Dilip Parmar stating that it extended its downward spiral, logging its steepest weekly loss since May 15.
Parmar also noted that persistent geopolitical tensions and sluggish monsoon rainfall continued to dampen domestic sentiment. In the near term, USDINR faces resistance at 95.80, with strong support positioned around 95.15, paving the way for a phase of consolidation, he added.