MUMBAI, September 9: The Indian rupee weakened past ₹95 per US dollar on Wednesday as surging crude oil prices and escalating Middle East tensions increased demand for the American currency.
Rupee Falls to ₹95.2250
The rupee slipped to an intraday low of around ₹95.2250 per dollar, reversing part of the gains generated by recent Reserve Bank of India intervention.
Traders said stop-loss selling accelerated the decline after the currency crossed the psychologically important ₹95 level.
Brent Crude Moves Toward $100
Brent crude climbed close to $100 per barrel, with another Reuters report placing it around $99.50 during Indian market hours.
The surge follows intensified Middle East conflict and growing concerns over disruptions to oil supplies through the Strait of Hormuz.
Higher Oil Creates Pressure for India
India is the world’s third-largest crude oil importer, making the rupee particularly vulnerable to a sharp rise in energy prices.
Higher crude prices can increase India’s import bill, boost dollar demand and add pressure to domestic inflation.
RBI Intervention in Focus
Market participants believe the RBI intervened in the currency market on Tuesday and Wednesday, although its presence appeared less aggressive than during the previous week.
The rupee was also the worst-performing Asian currency on Wednesday, according to Reuters.
source – Reuters
Supreme News Network
