Rupee Slips to 95.48 Against US Dollar on Crude Oil Rise
By ThePip Desk
The Indian rupee weakened 40 paise to close at 95.48 against the US dollar amid surging crude oil prices, rising US Treasury yields, and foreign outflows.
The Indian rupee weakened against the US dollar on Thursday as a combination of surging crude oil prices and rising US Treasury yields fueled inflationary concerns. The currency ended the session at 95.48, marking a decline of 40 paise from its previous close of 95.08 on Wednesday.
Key Market Drivers
Market participants pointed to multiple factors weighing on the domestic currency during Thursday’s trade:
Brent crude oil prices have surpassed the $102 a barrel threshold, driven by escalating tensions in West Asia. Foreign institutional investors maintained their selling trend, offloading securities worth Rs 582.99 crore during Wednesday’s session. Traders are currently monitoring upcoming US economic data for signals regarding the future interest rate trajectory.
Intraday Currency Performance
The rupee experienced volatility throughout the trading session, reflecting the broader cautious sentiment in the foreign exchange market.
Intraday range for the rupee was recorded as follows:
Daily high: 95.15
Daily low: 95.48
Closing price: 95.48
Global Market Context
On the international front, the Japanese yen strengthened against the US dollar on Thursday. This movement occurred as investors positioned themselves ahead of the Bank of Japan’s monetary policy decision scheduled for next week.