Rupee hits two-week low amid rising oil prices and forex swap changes
The rupee fell 0.2% to 95.6025 per dollar but avoided larger losses due to likely intervention by the Reserve Bank of India, traders said
The Indian rupee experienced its lowest point in two weeks on Monday as oil prices climbed and forex swap changes dampened investor sentiment, according to wire material. The currency slipped 0.2 percent, settling at 95.6025 per dollar. The RBI postponed the termination of its discounted forex swap facility for overseas deposits by a month, which appeared to prevent a more significant decline.
Analysts noted that a weaker dollar provided little relief to the rupee, with traders observing ongoing dollar buying interest from importers and regular market flows. Brent crude oil futures surged around 1 percent to $89.2 per barrel, despite the absence of major supply disruptions limiting gains. While robust dollar inflows from government policies have bolstered India’s balance of payments, concerns persist over oil price volatility weighing on the currency.
Experts at BMI forecasted the rupee could reach 97 by the end of March 2027 and 99 by the end of March 2028. Authorities are expected to refrain from actively appreciating the INR through direct market interventions, focusing instead on managing excessive volatility. Global equities saw a slight uptick, and the dollar index dipped towards two-month lows due to weak US economic indicators, such as a surprise fall in retail sales, which dampened expectations of an imminent US interest rate hike.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
