Rupee slips as high crude prices, dollar demand weigh

The Indian rupee fell 4 paise to 95.74 versus the US dollar in early trade on Tuesday, as higher crude prices and increased demand for the green back among importers pushed down the local fiat, The Hindu reported.

The rupee fluctuated within a narrow range between inter-bank dealings in the foreign exchange market following RBI’s interventions through state-run banks, Forex traders said.

“With rising crude prices further adding to downward pressures on the rupee as our import of crude continues. High geopolitical uncertainty around Iran, along with poor Asian equities also keeping investors wary,” the Forex trader added.
Meanwhile, the currency had closed at 95.70 against the dollar in the previous session, as per the market report.
“The rupee remains range-bound between Rs 95.50-96.00. Oil Prices & RBI Intervention will be key factors in the short term.”

“It seems traders are keeping their eyes on the oil price movements along with Global Risk Sentiment while keeping an eye on the Central Bank’s move in the Currency Market as well,” Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said.

Despite persistent pressures on oil prices and corporate demand for dollars, the RBI intervention helped curb volatility in recent days.