2 days ago
Rupee Falls to 95.56 as Crude Prices and Dollar Rise
The Indian rupee became slightly weaker against the US dollar on Monday.
It traded at 95.56 rupees for one dollar.
This was 13 paise lower than its previous closing value.
Traders said higher oil prices and geopolitical tensions were putting pressure on the rupee.
They also said investors were increasingly expecting a US interest-rate increase in September.
Those expectations helped push US Treasury yields higher and supported the dollar.
Oil prices rose because of worries about supplies through the Strait of Hormuz.
The Reserve Bank of India was said to be taking steps to prevent a much sharper fall.
India’s foreign exchange reserves also reached a record high.
The rupee opened 13 paise lower at 95.56 per US dollar on Monday.
Traders cited rising crude prices, geopolitical tensions and expectations of a September US Federal Reserve rate hike.
Brent crude rose 1.34% to USD 89.28 per barrel amid renewed Middle East supply concerns.
The Reserve Bank of India was reportedly intervening to limit the rupee’s depreciation.
India’s foreign exchange reserves rose USD 12.422 billion to a record USD 729.328 billion for the week ended August 21.
- Who
- The Indian rupee, US dollar, Reserve Bank of India, forex traders and investors.
- What
- The rupee fell 13 paise to 95.56 per US dollar in early trading.
- Where
- The interbank foreign exchange market in India.
- When
- Monday morning; the previous close was recorded on Friday, and reserves data covered the week ended August 21.
- Why
- Rising crude prices, geopolitical strain, expectations of a September US rate hike and a broader dollar rally pressured the rupee, while RBI intervention and FCNR(B) inflows provided support.
Key facts
- Opening exchange rate
- 95.56 rupees per US dollar
- Daily movement
- Down 13 paise from the previous close
- Previous close
- 95.43 per US dollar on Friday
- Brent crude
- USD 89.28 per barrel, up 1.34%
- Expected rupee range
- 95.25 to 95.75, according to Anil Kumar Bhansali
- Foreign exchange reserves
- USD 729.328 billion, up USD 12.422 billion
- Sensex and Nifty
- Sensex fell 226.60 points to 77,028.56; Nifty fell 120.40 points to 24,053.55





