Rupee Slumps Below 96 Against Dollar Amid Crude Price Surge
The Indian rupee depreciated by 16 paise to 96.13 against the US dollar in early trade on September 29, breaking below the psychologically important 96 per dollar level.
The decline was attributed to elevated crude oil prices and persistent foreign fund outflows, which are drawing portfolio flows out of emerging markets, including India.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said '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, according to Banerjee.
The dollar index was trading at 101.23, higher by 0.04%, while Brent crude oil prices rose 1.51% to $106.87 per barrel amid concerns over disruptions to crude supplies through the Strait of Hormuz.