Rupee continues slide as dollar strengthens

Mumbai: The rupee depreciated for the third straight day and settled 29 paise lower at 95.22 (provisional) against the US dollar on Monday, weighed down by elevated crude oil prices and geopolitical tensions in the Middle East. Forex traders said the Indian rupee declined on positive dollar and slight gains in US Treasury yields, while a recovery in the domestic markets cushioned the downside. At the interbank foreign exchange market, the rupee opened at 94.92 against the dollar, then lost ground to touch an intra-day low of 95.26 and finally settled for the day at 95.22 (provisional), registering a decline of 29 paise over its previous close.

On Friday, the rupee depreciated 12 paise to close at 94.93 against the US dollar. In the last three sessions, the rupee has lost 84 paise against the US dollar. “We expect the rupee to trade with a negative bias due to risk aversion on escalation of geopolitical tensions in the Middle East and between Russia and Ukraine. “Elevated crude oil prices amid supply concerns and selling pressure by FIIs may also pressurise the rupee.

However, any intervention by the RBI may support the rupee at lower levels,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan. The USD-INR spot price is expected to trade in a range of 94.90 to 95.50. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.01 per cent at 101.82.

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