Rupee Plunges 20 Paise to 95.95 Amid Strengthening Greenback and Oil Prices
Key Highlights
- Rupee slips 20 paise to 95.95 against the US dollar in early trade.
- Brent crude futures climb 2.31% to $106.81 per barrel in futures trade.
- Foreign Institutional Investors sell shares worth Rs 3,693.93 crore on a net basis on Friday.
Rupee Slips 20 Paise Against US Dollar Amid Strengthening Greenback and Elevated Crude Oil Prices.
The rupee began Monday in red, experiencing a 20-paise decline to 95.95 against the US dollar in early trade, as a strengthening greenback and rising crude oil prices added pressure on the domestic currency amid the ongoing Middle East conflict.
The decline followed a 24-paise gain on Friday, when the rupee settled at 95.75. The increase in crude prices, which rose 2.31% to $106.81 per barrel in futures trade, also contributed to the downward trend in the currency.
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| Financial Metric | Reported Value |
|---|---|
| Percentage Shift | 2.31% |
| Financial Volume / Value | Rs 3,693.93 crore |
| Brent Crude Rate | $106.81 per barrel |
Analysts predict that the rupee is likely to open at around 95.80 and remain within the range of 95.50 to 96.00. With the RBI continuing to hold the 96.00 mark. This prediction is based on the fact that Brent oil prices have remained firmly above the $100 mark.
Posing an underlying threat to India's import bill and foreign exchange reserves.
The dollar index has surged to 101.11. Its value now 0.15% higher than the previous day, as the greenback strengthens against a basket of six currencies. This uptick coincides with a sharp downturn on Dalal Street.
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There, the BES Sensex plummeted by over 900 points, a 1.17% decline, in the early trading session. The NSE Nifty also suffered, falling 231.50 points to 22,908.95.
Foreign investors have continued to pull money out of Indian equities. With Foreign Institutional Investors (FIIs) selling shares worth Rs 3,693.93 crore on a net basis on Friday, according to exchange data.
India's foreign exchange reserves recorded a significant decline in the latest week. Falling $14.881 billion to $765.901 billion in the week ended September 18. According to RBI data released on Friday.
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I write about the forces shaping business and the global economy, from startup growth and changing markets to international trade and policy. My work focuses on breaking down complex developments into clear, practical insights and understanding what they could mean for businesses, investors, and the wider economy.
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