Rupee Falls as Strong Dollar Weighs on Indian Currency
The Indian rupee fell to its lowest level in nearly two days, dropping 11 paise to 95.55 against the US dollar on Thursday.
The decline was attributed to a strong American currency and weak domestic markets, which outweighed the support provided by easing crude oil prices.
Brent prices had fallen below $90 for the first time in several sessions due to ongoing discussions between Iran and Oman regarding a temporary shipping corridor through the Strait.
Despite no final agreement being reached, the negotiations have reduced fears of a prolonged disruption to global oil supplies.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, noted that the rupee's story this month is largely driven by flows. He estimated total inflows under special swap facilities could reach $85-90 billion, leaving significant room for appreciation potential.