Rupee Falls Amid Crude Price Surge, FII Inflows Provide Support
The Indian Rupee has fallen to 94.50 against the US dollar due to rising crude oil prices and negative domestic equities, despite foreign inflows.
On Monday, the rupee dropped 7 paise from its previous close of 94.43, with forex traders citing a weak tone in domestic markets and a surge in crude oil prices as contributing factors.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, noted that while foreign inflows and a soft dollar provided some support for the rupee, the negative impact of surging crude prices capped sharp gains.
Choudhary also mentioned that the ongoing US-Iran tensions and upcoming inflation data could influence future rupee movements, with Iran's announcement on the deal with Oman regarding the Strait of Hormuz potentially easing crude oil prices and supporting the rupee.