Rupee Falls Past 96 Against U.S. Dollar as Crude Prices Rise
NEW DELHI — The Indian rupee weakened against the U.S. dollar Friday, breaching the 96 mark amid rising crude oil prices, global market pressure and continued geopolitical tensions linked to the Iran conflict.
The rupee opened at 95.86 in the interbank foreign exchange market and slipped to 95.94 in early trade. It had touched an all-time low of 95.96 in the previous session.
Pressure on the currency intensified after Indian oil marketing companies raised petrol and diesel prices by Rs 3 per liter with immediate effect.
Analysts said the rupee has remained under pressure in recent weeks and has emerged as one of Asia’s worst-performing currencies as India’s import bill faces strain from higher energy costs.
Market sentiment also remained fragile after talks between U.S. President Donald Trump and Chinese President Xi Jinping failed to produce significant progress on key geopolitical issues, particularly those tied to the U.S.-Iran front.
Despite the pressure on the rupee, Indian equity markets showed resilience during intraday trade. The BSE Sensex rose 471.64 points, or 0.62%, while the Nifty 50 gained 150 points, or 0.63%, to touch 23,839.30.
Crude oil prices continued to climb. International benchmark Brent crude rose 3.46% to $109.38 a barrel, while U.S. West Texas Intermediate crude advanced 4% to $105.24 a barrel.
Indian oil marketing companies have raised petrol and diesel prices by Rs 3 per liter.
A senior official said the increase was significantly lower than the losses being absorbed by public sector oil companies because of the surge in global crude prices, which have crossed the $100-per-barrel mark. (Source: IANS)
