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Rupee weakens past ₹97 per dollar as dollar, yields and oil weigh

Analysts said rupee depreciation can lift import costs and imported inflation risk, adding pressure to corporate margins and the current account.

Reported · Written up by our desk · Trade & Tariffs

The Indian rupee is trading below the ₹97 per dollar level after pressure from a stronger US Dollar Index, elevated US Treasury yields, and Brent crude staying above $100 a barrel, according to LiveMint Markets.

LiveMint Markets also cited persistent foreign institutional investor outflows from Indian equities as an added factor weighing on the domestic currency and contributing to weakness in broader equity markets.

Analysts said the weaker rupee is a macroeconomic headwind for India because the country remains heavily dependent on imported crude oil and other commodities.

LiveMint Markets quoted analyst Sugandha Sachdeva saying rupee depreciation raises the landed cost of imports, increases the risk of imported inflation, and can add margin pressure, with higher crude oil prices and a weaker rupee potentially reinforcing each other.

Latest closeWTI crude $89.70 ▼1.6%|Brent $100.73 ▼1.5%|Dollar index 102.19 ▲0.3%

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