Rupee Falls to New Low Against Dollar Amid Ongoing Conflict and Rising Oil Prices
The Indian rupee depreciated by 20 paise against the US dollar in early trade on Monday, September 28, to reach a new low of 95.95. This comes as the greenback continues to strengthen globally and foreign fund outflows persist amid the ongoing conflict in West Asia.
Forex traders pointed out that elevated global crude oil prices are putting additional pressure on the local currency. At the interbank foreign exchange market, the rupee opened at 95.89 against the US dollar but lost ground to touch 95.95, marking a loss of 20 paise from its previous closing level.
On Friday, September 25, the rupee had appreciated by 24 paise to close at 95.75 against the US dollar. Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, traded at 101.11, up 0.15%.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, the rupee is expected to remain in the range of 95.50 to 96.00 with the RBI continuing to hold the 96.00 mark.