Noida, Sep 28 (APAC Media): The rupee opened 7 paise lower at ₹95.88 against the US dollar on Monday, weighed down by a rise in Brent crude prices and broader pressure in global currency markets.
The domestic currency had settled at ₹95.81 against the US dollar in the previous session.
Brent crude was trading above $105 a barrel, with oil prices gaining amid renewed concerns over developments involving the United States and Iran. Higher crude prices can weigh on the rupee as India meets a significant portion of its crude oil requirement through imports.
Market participants were also keeping a close watch on possible intervention by the Reserve Bank of India in the foreign exchange market.
According to Amit Pabari, Managing Director at CR Forex Advisors, the ₹96.10-₹96.20 zone remains an important resistance area for the rupee.
Pabari said a sustained break below ₹95.70 could open the way towards ₹95.20-₹95.00, while the market would be watching whether the ₹95.70 level holds.
The rupee has remained under pressure in recent sessions amid elevated crude prices, higher US Treasury yields and global geopolitical uncertainty.
Investors are also awaiting key US economic data due later in the week, including the September non-farm payrolls report and August personal consumption expenditure inflation data. Comments from US Federal Reserve officials will also be watched for clues on the future path of interest rates.
Higher US Treasury yields can support the dollar by making US-denominated assets relatively more attractive, potentially putting additional pressure on emerging-market currencies.
For the domestic currency, traders are likely to track movements in crude oil prices, the dollar index, US bond yields and any intervention by the RBI during the session.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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