Indian Rupee Weakens 13 Paise Against Dollar Amid Oil Surge
By ThePip Desk
The Indian rupee depreciated by 13 paise against the US dollar, closing at 95.30 due to rising global crude oil prices and geopolitical tensions.
The Indian rupee concluded Monday’s trading session weaker against the US dollar, settling provisionally at 95.30. This marked a 13 paise depreciation from its previous close of 95.17 recorded on Friday.
The currency’s depreciation was primarily driven by a significant rise in global crude oil prices, coupled with heightened investor caution over geopolitical developments. Brent crude prices traded above the $84 a barrel mark, adding pressure.
Key Market Influences
- Global crude oil prices rose, with Brent crude exceeding $84 a barrel.
- Uncertainty persisted regarding an agreement between Iran and Oman over the management of the Strait of Hormuz.
- Houthis claimed an attack on a Saudi Aramco refinery, further escalating tensions.
- The US Senate’s approval of a bill imposing sanctions on Russia raised concerns for Indian exports.
- India’s continued purchase of Russian crude oil could expose its exports to additional tariffs of up to 100 per cent, according to the Global Trade Research Initiative (GTRI).
During Monday’s trading, the rupee’s movement was contained within a range, touching a high of 95.32 and a low of 95.18 against the dollar. On the global front, the euro also experienced mild weakness against the US dollar, influenced by the ongoing uncertainty surrounding the Strait of Hormuz.