Rupee Falls to 94.50 Against Dollar Amid Crude Price Surge
The Indian rupee declined by 7 paise to close at 94.50 against the US dollar on Monday, due to surging crude oil prices and global headwinds offsetting strong FCNR dollar inflows.
Forex traders noted that the rupee saw modest gains in initial trade on foreign inflows, but a negative trend in domestic equities and rising crude oil prices weighed on investor sentiment.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, stated that the Indian rupee traded flat to positive on foreign inflows and a soft dollar. However, a weak tone in domestic markets and a surge in crude oil prices capped sharp gains.
The dollar index was trading at 98.90, lower by 0.27%, while Brent crude, the global oil benchmark, was trading higher by 0.58% at USD 96.84 per barrel in futures trade.