MUMBAI, September 10: The Indian rupee weakened to around ₹95.30 per US dollar on Thursday, its lowest level in nearly 10 days, as high crude oil prices and strong dollar demand continued to pressure the currency.
High Oil Prices Weigh on Rupee
Brent crude remained above $100 per barrel amid escalating US-Iran tensions and disruptions around key Middle East shipping routes. Higher oil prices increase dollar demand in India, which depends heavily on imported crude.
Importers and Outflows Add Pressure
Demand for dollars from importers, corporate debt repayments and expected capital outflows also contributed to the rupee’s decline.
Traders said state-run banks were seen selling dollars, likely on behalf of the Reserve Bank of India, helping limit sharper losses.
RBI Steps Up Currency Support
The RBI has also been using dollar-rupee sell-buy swaps to absorb excess liquidity and indirectly support the currency.
Market participants remain focused on crude oil prices and RBI intervention, with further weakness possible if energy costs stay elevated.
source – Reuters
Supreme News Network
