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Indian rupee slips past 96 per dollar to a two-month low
The rupee hit an intraday low of ₹96.1475 per dollar after oil prices rose and foreign investors increased portfolio outflows.
The Indian rupee weakened past ₹96 per dollar on Tuesday, September 29, reaching a two-month low as rising crude oil prices intensified concerns about the impact on India’s import bill and further portfolio outflows. LiveMint Markets said the rupee fell to an intraday low of ₹96.1475 per dollar, down nearly 0.2%, before partially recovering.
LiveMint Markets attributed the currency pressure partly to higher Brent crude prices, which climbed 2% to $107.40 a barrel on worries about supply disruptions in the Middle East following the US-Iran conflict. The outlet said a recovery in crude exports from the region was not enough to offset those risks.
The report also pointed to a complex backdrop for the Reserve Bank of India’s policy outlook ahead of its October monetary policy meeting. LiveMint Markets noted ongoing inflation, strong economic growth, and anticipation of rising global interest rates could complicate decisions, and it flagged expectations that RBI intervention may help stabilize the rupee.
According to LiveMint Markets, higher oil prices remain a key concern for an economy that relies heavily on imports to meet energy needs. The outlet also said concerns about potential widening of India’s current account deficit could continue to weigh on the rupee.
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