Oil, dollar squeeze rupee; currency ends at 95.92

The rupee depreciated 38 paise to close at 95.92 (provisional) against the US dollar on Tuesday, weighed down by escalating Middle East tensions and surging Brent crude prices, which crossed $108 a barrel.

At the interbank foreign exchange market, the rupee opened at 95.84 and weakened to close at 95.92, against 95.54 on Friday. Forex and equity markets were closed on Monday for Ganesh Chaturthi.

"Rising global crude oil prices amid fears over supply disruption and a strong dollar may also pressurise the rupee," said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.

The dollar index was up 0.22 per cent at 99.61, while Brent crude rose 1.92 per cent to $107.71 a barrel.

The rupee was also hit by weak domestic equities and concerns over rising global Treasury yields. Foreign investors sold equities worth Rs 930.90 crore on a net basis on Friday.

However, record-high forex reserves of $785.706 billion and possible RBI intervention could provide support to the rupee.

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