Rupee Hits New Low Against Dollar Amid Crude Price Surge
The Indian rupee declined by 6 paise against the US dollar on Tuesday to settle at 95.36, tracking a sharp rise in global crude oil prices amidst geopolitical uncertainties.
This decline was largely driven by a surge in crude oil prices, with Brent crude futures jumping 2.45% to $89.87 per barrel in futures trade.
Forex traders noted that recent foreign capital inflows provided some support to the local unit, but the rupee's performance remains uncertain due to ongoing geopolitical tensions and rising US Treasury yields.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, expects the rupee to trade with a slight negative bias, adding that any intervention by the RBI may support the rupee at lower levels. He also noted that traders may remain cautious ahead of US inflation data this week.