Now Reading: Rupee opens at 95.28 as oil and US yields pressure currency
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Rupee opens at 95.28 as oil and US yields pressure currency
The rupee opened six paise lower at Rs 95.28 against the US dollar on Friday, extending its 14-paise fall in the previous session. A stronger dollar, higher US Treasury yields and rising…
The Story in Brief
The rupee opened six paise lower at Rs 95.28 against the US dollar on Friday, extending its 14-paise fall in the previous session. A stronger dollar, higher US Treasury yields and rising crude prices weighed on the currency. Brent crude was at $83.48 a barrel in futures trade, while the dollar index stood near 99.95.
Mint reports that markets are awaiting the US July jobs report for clues on Federal Reserve policy. Geopolitical concerns over shipping through the Strait of Hormuz have also supported oil prices. Mint says the Reserve Bank of India’s short dollar forward book has reached a reported $106.7 billion. Analysts see Rs 95.00 to Rs 95.10 as near-term support.
The Indian Opinion
Claims that one trigger alone is driving the rupee are too simplistic. Oil, US interest rates, dollar demand from importers and RBI operations all matter, while geopolitical risks can change quickly. Equally, a reported record forward position does not mean the central bank can prevent every move, since those contracts create future obligations. The useful test is whether the rupee holds Rs 95.00 to Rs 95.10 after the US jobs data and the next oil-price move.
Sources (2): timesofindia.indiatimes.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
