Rupee falls 11 paise to close at 95.28 against US dollar on firm crude oil prices

The Indian rupee weakened by 11 paise, closing at 95.28 against the US dollar on Monday, as a strong greenback and rising global crude oil prices put pressure on the local unit. Lack of progress in West Asia talks further undermined the rupee, while foreign institutional investor (FII) inflows offered some relief. The currency opened at 95.18 and fluctuated between 95.18 and 95.31 before settling at 95.28, down 11 paise from Friday's close of 95.17.

Brent crude oil prices surged above $84 per barrel, contributing to the rupee's decline. However, positive FII inflows, which started strengthening in July and continued into August, helped support the rupee. Forex traders anticipate caution ahead of the upcoming US inflation data this week. The dollar index, which measures the dollar's strength against a basket of currencies, rose by 0.13 percent to 99.66.

Brent crude oil prices climbed 0.96 percent to $84.35 per barrel. On the domestic stock market, the Sensex ended the day up by 43.27 points, or 0.06 percent, at 78,542.44, while the Nifty increased by 13.15 points, or 0.05 percent, to 24,583.80. On Friday, foreign institutional investors bought equities worth ₹480.24 crore. The Reserve Bank of India reported a surge in foreign exchange reserves by $10.512 billion to $692.866 billion during the week ended on July 31.