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Rupee Falls 20 Paise Against Dollar Amid Oil, Outflows
The Indian rupee became slightly weaker against the US dollar on Monday.
It fell by 20 paise to 95.95 rupees per dollar.
The US dollar was stronger, which made it harder for the rupee to gain value.
Oil prices also rose above $106 per barrel.
India imports oil, so more expensive oil can increase the country’s need for dollars.
Foreign investors also sold Indian shares, adding to pressure on the rupee.
An analyst expected the rupee to remain between 95.50 and 96.00.
The analyst said the Reserve Bank of India may help prevent the rupee from weakening beyond 96.00.
The rupee fell 20 paise to 95.95 against the US dollar in early Monday trade.
The currency opened at 95.89 after closing at 95.75 on Friday.
The dollar index rose 0.15% to 101.11, while Brent crude climbed 2.31% to $106.81 per barrel.
Foreign institutional investors sold Indian equities worth ₹3,693.93 crore on a net basis on Friday.
India’s foreign exchange reserves fell $14.881 billion to $765.901 billion in the week ended September 18.
- Who
- The Indian rupee, the US dollar, foreign institutional investors, the Reserve Bank of India, and market analyst Anil Kumar Bhansali were involved in the report.
- What
- The rupee declined 20 paise to 95.95 against the US dollar in early trade.
- Where
- At the interbank foreign exchange market in India.
- When
- Monday morning; the cited foreign-exchange-reserve data covered the week ended September 18.
- Why
- The rupee was pressured by a stronger dollar, higher crude oil prices, continued foreign fund outflows, weak domestic equities, and uncertainty linked to the ongoing West Asia conflict.
Key facts
- Rupee opening rate
- 95.89 per US dollar
- Early-trade rate
- 95.95 per US dollar
- Previous close
- 95.75 per US dollar on Friday
- Dollar index
- 101.11, up 0.15%
- Brent crude
- $106.81 per barrel, up 2.31%
- Foreign equity outflows
- ₹3,693.93 crore on a net basis on Friday
- Foreign exchange reserves
- $765.901 billion after a weekly decline of $14.881 billion
Quotes
Anil Kumar Bhansali
Head of Treasury and Executive Director at Finrex Treasury Advisors LLP
“Despite the Brent oil for November series being higher due to US President Donald Trump rejecting the peace proposal from Iran, the rupee is set to open at around 95.80 and is expected to remain in the range of 95.50 to 96.00 with the RBI continuing to hold the 96.00 of the range”
deccanchronicle.com
Sources
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