Rupee closes marginally up 3 paise at 95.12 against US dollar amid elevated crude oil prices
In the interbank foreign exchange market, the rupee opened at 95.17 and traded in a tight range of 95.09 to 95.24 before closing at 95.12 (provisional) against the greenback, up 3 paise from its previous close
On Tuesday, the Indian rupee closed marginally higher by 3 paise at 95.12 against the US dollar, according to provisional figures. The Reserve Bank of India's potential intervention played a role in the modest recovery, but foreign equity investors' persistent selling efforts hindered the currency's progress. Forex traders noted that the rupee opened at 95.17 and fluctuated between 95.09 and 95.24 before concluding at 95.12, marking a 3 paise increase from the prior close.
On Monday, the rupee experienced its third consecutive daily depreciation, settling 22 paise lower at 95.15 against the US dollar. Over the past three trading sessions, the rupee has lost 77 paise against the US dollar. Anuj Choudhary, a research analyst at Mirae Asset Sharekhan, attributed the slight gains to likely RBI intervention, but warned of a negative bias due to a stronger dollar and shaky global markets.
Choudhary also highlighted that elevated crude oil prices could keep the rupee under pressure, though hopes of de-escalation between the US and Iran through diplomatic talks might offer some relief. Any RBI intervention might bolster the rupee further at lower levels. Traders are advised to monitor durable goods orders and consumer confidence data from the US to gauge the forex market's direction.
The USD-INR spot price is projected to range between Rs 94.85 and Rs 95.50. Meanwhile, the dollar index, which measures the greenback's strength against six major currencies, climbed 0.06% to 101.86. Brent crude, the global oil benchmark, slipped 0.07% but remained near its six-month high of $115.73 per barrel in futures trading.
Analysts linked the surge in crude oil prices to Houthi-led attacks on Saudi Arabia's oil infrastructure, heightening concerns about potential disruptions in the global supply chain. On the domestic equity market, the Sensex closed 8.08 points lower at 73,598.67, while the Nifty slipped 3.45 points at 22,749.75. Net outflows from Foreign Institutional Investors (FIIs) reached ₹1,462.49 crore on Monday, as reported by exchange data.
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