10 hrs ago
Rupee Falls as Brent Crude Surges Above $102
The rupee is India’s currency, and it became weaker against the US dollar.
On Thursday, one dollar was worth about 95.46 rupees.
The rupee had already fallen to 95.08 on Wednesday.
Oil prices rose above 102 dollars per barrel.
India may have to spend more money importing oil when prices rise.
Some foreign investors also began taking money out of Indian markets again.
A currency expert said oil prices, not a stronger dollar, were mainly responsible for the rupee’s decline.
The dollar itself was at multi-month lows.
The rupee fell 38 paise to close at 95.46 against the US dollar on Thursday.
Brent crude prices breached USD 102 per barrel, raising concerns about India’s import costs.
Foreign portfolio outflows resumed after positive flows in July and August.
The rupee opened at 95.15 before weakening to its provisional close of 95.46.
Anindya Banerjee said the decline was driven by oil prices rather than dollar strength.
- Who
- The Indian rupee, foreign portfolio investors, oil traders, and currency analyst Anindya Banerjee were involved in the developments.
- What
- The rupee depreciated 38 paise to close at 95.46 against the US dollar.
- Where
- The trading was reported from Mumbai and took place in the interbank foreign exchange market.
- When
- The decline occurred on Thursday; the rupee had also fallen on Wednesday.
- Why
- Resumed foreign portfolio outflows and Brent crude prices above USD 102 per barrel increased downward pressure on the rupee.
Key facts
- Thursday close
- 95.46 rupees per US dollar, provisional
- Daily decline
- 38 paise
- Opening rate
- 95.15 rupees per US dollar
- Previous close
- 95.08 rupees per US dollar on Wednesday
- Brent crude
- Above USD 102 per barrel
- Recent capital flows
- Foreign portfolio flows were positive in July and August before outflows resumed
- Analyst assessment
- Anindya Banerjee described the move as oil-driven rather than dollar-driven
Quotes
Anindya Banerjee
Head of Commodity and Currency Research at Kotak Securities
“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”
thehansindia.com
Sources
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