Rupee Slips as Crude Prices Rise and Geopolitics Bite

The Indian rupee depreciated against the US dollar in early trade on Thursday, pressured by elevated crude oil prices and lingering geopolitical risks.

The rupee opened at 95.40, down 7 paise from its previous close of 95.33.

Fx traders said investor sentiment remains fragile due to the ongoing standoff between the US and Iran, with Iran warning of keeping the Strait of Hormuz closed until 2029.

Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, noted that the RBI has been supporting the rupee at a range of 95.41-95.45 despite oil demand being lower.