Rupee sinks deeper as oil shock returns
In Short
Indian rupee depreciates to 95.46 against the US dollar, pressured by surging Brent crude prices above USD 102 and renewed foreign portfolio outflows.
Share :
Rupee sinks deeper as oil shock returns
Mumbai: The rupee depreciated 38 paise to close at 95.46 (provisional) against the US dollar on Thursday, as Brent crude breached the USD 102 threshold, mounting concerns over the country's import cost trajectory.
Forex traders said the currency is currently facing opposing forces, with downside pressure driven by a resumption of foreign portfolio outflows, following positive flows in July and August and crude oil trading above USD 102 per barrel.
At the interbank foreign exchange market, the rupee opened at 95.15 against the US dollar, then lost ground to close at 95.46 (provisional) against the American currency, registering a loss of 38 paise from its previous close. On Wednesday, the rupee slumped 34 paise to close at 95.08 against the American currency.
"The rupee has depreciated back towards 95.45, and it is important to understand that this is an oil-driven move rather than a dollar move, since the dollar itself is at multi-month lows," said Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities.
