Rupee Slips Below 96 Against US Dollar Amid Oil Price Pressures

The Indian rupee depreciated by 16 paise to close at 96.13 against the US dollar in early trade on Tuesday, slipping below the psychologically important 96 per dollar level.

This decline was attributed to a combination of factors, including elevated crude oil prices and persistent foreign fund outflows.

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

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, noted that 'we could see 96.50 in the coming days, and a clear break above 96.50 would open the door towards 98. Major support is now at 95.50.'