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Rupee slips 8 paise as crude oil prices bounce back
The rupee weakened 8 paise to 95.25 against the US dollar on Monday as a firmer greenback and higher global crude oil prices weighed on the currency. Brent crude futures rose 0.91%…
The Story in Brief
The rupee weakened 8 paise to 95.25 against the US dollar on Monday as a firmer greenback and higher global crude oil prices weighed on the currency. Brent crude futures rose 0.91% to $84.31 per barrel in trade, after declining 5% last week, according to The Hindu Business Line. The publication notes that Brent futures had fallen to a low of $78.11 before recovering, and the outlook remains unclear. A further decline could drag the contract back to $78, while a rise above $86 could strengthen it to $91. On the domestic front, crude oil futures on the MCX fell to a low of ₹7,078 before recovering to ₹7,424, but the bias remains bearish until it reclaims ₹7,500.
The Indian Opinion
The narrative of falling crude oil prices last week was seen as a relief for India's import bill but the bounce on Monday shows volatility remains high. The rupee's small dip also reflects global uncertainty and dollar strength, not just oil. The key test is whether Brent crude futures can hold above the $78 support or break below. That will settle the near-term direction for both oil and the rupee.
Sources (2): thehindubusinessline.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
