Noida, Aug 11 (APAC Media): The rupee declined 11 paise to close at 95.28 against the US dollar on Monday, weighed down by a stronger American currency and higher crude oil prices.
The domestic currency opened at 95.18 and moved in a narrow range of 95.18 to 95.31 during the session before settling at 95.28, down from its previous close of 95.17, according to market data.
A firm US dollar in overseas markets and increased dollar demand weighed on the rupee, dealers said.
Rising crude oil prices also added pressure to the domestic currency. Brent crude was trading around USD 84.35 a barrel, up nearly 1 per cent, amid continued uncertainty in global markets.
India, one of the world’s largest crude oil importers, could see higher demand for dollars if elevated oil prices increase the country’s import bill, analysts said.
Market participants also remained cautious amid ongoing geopolitical tensions in West Asia, including developments involving the US and Iran.
The Reserve Bank of India is believed to have intervened in the foreign exchange market through dollar sales, helping limit the rupee’s decline, dealers said.
“Persistent dollar demand amid higher crude prices kept the rupee under pressure. Geopolitical uncertainty also weighed on sentiment,” a market dealer said.
Going ahead, traders are likely to track movements in crude oil prices, the dollar index and developments in West Asia for further cues on the rupee.
The currency market is also expected to remain sensitive to any intervention by the central bank aimed at containing excessive volatility.
–ENDS–
Disclaimer:Â This article is for informational purposes only. APAC Media is not liable for any investment decisions or losses. Please conduct your own research or consult a financial advisor before investing.
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