Rupee Falls Against Dollar Amid Crude Price Surge
The Indian rupee depreciated by 10 paise against the US dollar on Tuesday, trading at 94.66 in early trade. The decline comes as Brent crude prices surged near USD 97 per barrel, fueled by escalating US-Iran tensions and concerns over oil flows through the Strait of Hormuz.
Forex traders noted that ongoing RBI sales of dollars and strong foreign-currency inflows under special schemes helped keep the rupee range-bound despite heavy external pressures. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.80, lower by 0.37 per cent.
Anil Kumar Bhansali, Head of Treasury and Executive Director of Finrex Treasury Advisors LLP, attributed the RBI's intervention in preventing higher oil prices from translating into a weaker rupee. He forecasted that the rupee would remain within a range of 94.00 to 94.75 as crude oil prices remain near USD 97 per barrel.
The market is awaiting key data releases, including US and India CPI numbers on September 16, as well as the FOMC meeting for further cues.