Rupee Drops 19 Paise To 95.61, Costlier Crude and Weak Stocks Weigh

Mumbai: The Indian rupee slipped 19 paise on Monday, settling at 95.61 against the US dollar, weighed down by higher global oil prices and sluggish domestic stock markets. At the interbank foreign exchange market, the rupee ranged between 95.49 and 95.62 during the day. Forex traders indicated the rupee may maintain a slight negative stance, with delays in a potential US-Iran agreement, higher crude oil prices, and a stronger dollar keeping the currency under pressure.

Brent crude oil climbed 0.99% to $89.40 per barrel. Anuj Choudhary, a research analyst at Mirae Asset ShareKhan, attributed the rupee's decline to weak domestic markets and rising crude prices, though a softer dollar helped temper further depreciation. The dollar index slipped 0.26% to 99.40. The Reserve Bank of India reduced the duration of its concessional swap facility for Foreign Currency Non-Resident (Bank), or FCNR(B), deposits, extending coverage only until August 31, from the previous deadline of September 30.

This move prompted cautious market sentiment. Rupee gains 13 paise to close at 95.15 against the dollar after the RBI maintained the repo rate.