Rupee falls 19 paise to close at 95.61 against US dollar

The rupee depreciated 19 paise to close at 95.61 against the US dollar on Monday, pressured by weak domestic equity markets and a surge in crude oil prices. The Reserve Bank of India's decision to advance the deadline for its discounted forex swap facility for FCNR(B) deposits also weighed on the currency, Telangana Today reports. The RBI said the facility will be available only for deposits mobilised until August 31, compared with the earlier September 30 deadline.

Livemint reports the rupee opened 5 paise lower at 95.48, though a softer dollar and foreign inflows of nearly $6.6 billion into Indian equities since June provided some support. The US Dollar Index eased to around 99.50. However, geopolitical risks, including unresolved US-Iran talks and fresh military action in Lebanon, could push crude prices higher, adding pressure. India's trade deficit widened sharply to $31.98 billion.

Analysts expect the rupee to trade with a slight negative bias. The RBI's FCNR(B) swap facility attracted $56.84 billion in inflows as of August 13, according to Telangana Today. India's forex reserves jumped $14.136 billion to $707.002 billion in the week ended August 7.