Rupee Dips vs USD: Oil Spike, Fed Hike Fears Impact Indian Currency
Indian Rupee symbol positioned below US Dollar symbol, with market graph lines.
Key Highlights
Indian Rupee weakens to 95.44 against USD due to rising Brent crude prices and anticipation of a Federal Reserve rate hike. Learn more.
The Indian rupee opened marginally weaker against the US dollar on Monday, trading at 95.44. This marked a 1-paisa depreciation from its previous close of 95.43 on Friday.
Key Numbers
- Current Rupee Level: 95.44
- Weakened By: 1 paisa
- (Friday): 95.43
- : 95.56
- : 95.4050
Multiple factors contributed to the rupee’s downturn in early trade. A significant spike in Brent crude prices, triggered by a US strike on Iran’s Larak Island, exerted considerable pressure on the domestic currency.
Driving Factors
- Market expectations of a Federal Reserve rate hike as early as next month, following hawkish remarks from Fed Chair Kevin Warsh.
- Weak domestic equities, stemming from consistent foreign fund outflows.
Foreign institutional investors (FIIs) notably offloaded equities on Friday. data confirmed these investors sold holdings worth a net Rs 5,039.80 crore.
Despite these pressures, the rupee’s decline was somewhat contained. Persistent foreign-currency inflows provided support, while interventions from the Reserve Bank of India (RBI) actively limited further downside.