Rupee Falls to Fresh Low Amid Oil Price Surge and FII Outflows

The Indian rupee depreciated 16 paise to 96.13 against the US dollar in early trade on Tuesday, weighed down by elevated crude oil prices and persistent foreign fund outflows.

Forex traders said the rupee is under pressure due to a combination of firm oil prices and rising US nominal and real yields, which are drawing portfolio flows out of emerging markets, including India.

The rupee opened at 96.03 before falling to 96.13 against the dollar, registering a fall of 16 paise from its previous close.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said that major support for the rupee is now at 95.50, with a clear break above 96.50 opening the door to 98.