Politics · India Bureau
Rupee slides past 95 mark as crude oil surges above $100
The Indian rupee weakened to 95.33 against the US dollar in early Thursday trading as Brent crude prices breached the $100 level, intensifying concerns about the country's import costs. Elevated oil prices and strong dollar demand pressured the domestic currency despite central bank intervention.
LSN India ·
The rupee depreciated 25 paise during Thursday's early trading session, extending losses from the previous day when it had fallen 34 paise to close at 95.08. The currency opened at 95.15 before declining further to touch 95.33 against the US dollar at the interbank foreign exchange market.
The rupee's breach of the psychologically significant 95 level against the dollar triggered additional greenback demand and stop-loss activity from traders. Elevated crude oil prices and persistent demand for US currency from importers and corporates weighed on market sentiment, according to forex dealers monitoring the session.
With Brent crude climbing past the $100 mark, India's import bill faces renewed pressure at a time when inflation concerns already weigh on economic growth. The country, which imports approximately 85 percent of its oil requirements, remains vulnerable to crude price volatility.
The Reserve Bank of India's intervention in the forex market helped contain the rupee's decline, preventing a steeper depreciation. Treasury officials noted that the combination of external headwinds—ranging from oil prices to global dollar strength—continues to challenge the rupee's stability in the near term.