Rupee Slips Amid Strong Dollar and Rising Oil Prices
The rupee declined by 10 paise to close at 85.48 against the US dollar, pressured by a strong dollar and rising global crude prices. Positive domestic equity and foreign inflows kept it from further sliding. Analysts predict limited range trading due to dollar demand and FII outflows.
- Country:
- India
The Indian rupee experienced a decline of 10 paise, closing at 85.48 against the US dollar on Thursday. This drop was largely influenced by the strengthening of the American currency against major counterparts globally, coupled with escalating crude oil prices.
Despite this downward pressure, the local currency's losses were mitigated by buoyant domestic equity markets and a steady inflow of foreign funds, according to forex traders. At the interbank foreign exchange, the rupee commenced the day at 85.56, hitting a day's low of 85.62 and a high of 85.40, ultimately ending the session at 85.48.
Persisting greenback strength following a recent US federal court decision, alongside an uptick in Brent crude prices, continued to challenge the rupee. Meanwhile, India's equity indices rose, bolstered by foreign institutional investors, amid projections in the Reserve Bank's report of sustained economic growth despite slower industrial output.
(With inputs from agencies.)
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