Rupee Tumbles as Crude Soars Above $90 Per Barrel

The Indian rupee continued its decline against the US dollar on Tuesday, falling 7 paise to 95.68 in early trade.

This is a continuation of Monday's losses, where the rupee had already lost 19 paise and closed at 95.61 against the dollar.

The main reason for the rupee's weakness is the surge in crude oil prices, which have risen above $91 per barrel. This has increased demand for dollars linked to oil payments, putting pressure on the currency.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said that the rupee could remain under pressure due to rising oil prices. He noted that the Reserve Bank may allow some depreciation in the rupee to continue, but would likely intervene to protect levels around 95.75.