Rupee Weakens Slightly Amid Crude Oil Surge and Dollar Volatility
By ThePip Desk
Indian Rupee depreciates by 1 paisa to 95.74 against the US Dollar, influenced by rising crude oil prices and US bond market movements.
The Indian rupee registered a mild weakness against the US dollar on Thursday, closing at 95.74. This represented a 1 paisa decline from its previous close of 95.73 recorded on Wednesday.
Key Currency Levels
- Closing Rate: 95.74 (Provisional)
- Previous Close: 95.73 (Wednesday)
- Intraday High: 95.74
- Intraday Low: 95.56
The domestic currency faced sustained pressure from surging crude oil prices, with Brent crude trading above the $94 a barrel mark. Lingering tensions in West Asia continued to fuel these price increases, directly impacting the rupee’s performance.
However, the rupee found some support as the US dollar weakened following an announcement from the US Treasury Department. The department confirmed it would double its long-duration bond buybacks to at least $4 billion per operation, influencing dollar strength.
Further aiding the Indian currency were consistent foreign capital inflows into the nation’s capital markets. Foreign institutional investors (FIIs) were net buyers during Wednesday’s session, acquiring securities worth Rs 407.99 crore.
Globally, the Australian dollar also experienced a weakening against the US dollar on Thursday. This move was attributed to softer labour market data, which subsequently reduced expectations for another rate hike by the Reserve Bank of Australia.
Ultimately, the rupee’s modest decline reflects a balance of external pressures from oil prices and geopolitical factors, partially offset by a softer dollar and sustained foreign investment in India.