Rising oil prices weigh on Indian rupee

Staff Report/Dubai
Filed on June 28, 2021

The Indian rupee fell six paise to 74.26 against the US dollar at the opening of the markets on Monday.

The Indian rupee fell six paise to 74.26 against the US dollar (20.23 versus the UAE dirham) at the opening of the markets on Monday as rising oil prices weighed on the South Asian currency.

The rupee opened at 74.24 against the dollar at the interbank market and then dropped to 74.26. It had closed at 74.20 against the US dollar on Friday.

“The apparent risk for the rupee this week is persistently higher crude oil prices. That, coupled with the market expectations for a slightly stronger dollar in the short run, will continue to weigh on the local unit,” Reliance Securities said.

Global oil benchmark Brent crude futures are down 0.22 per cent to $76.01 per barrel.

Asian currencies have started flat to marginally weaker against the greenback this morning and could cap appreciation bias, the note added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02 per cent up at 91.86.

The Bombay Stock Exchange (BSE) Sensex was trading 39.17 points or 0.07 per cent lower at 52,885.87, while the broader NSE Nifty declined 6.85 points or 0.04 per cent to 15,853.50.

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