Rupee hovers near 96 as oil stays above $100 per barrel, foreign selling persists
The Indian Rupee is under pressure, hovering near 96 against the US dollar due to high oil prices and foreign capital outflows. The Reserve Bank of India is intervening to stabilize the currency as markets anticipate a rate hike.
Why it matters
Currency volatility and declining foreign exchange reserves impact India's economic stability and inflation outlook.
Rupee began the week on a cautious note, struggling to move away from the 96-per-dollar level, as high crude oil prices and continued foreign fund selling keeping the currency under pressure. On Monday, rupee opened at 96.20 against the US dollar before weakening to 96.26, down 1 paisa from its previous close.The Reserve Bank of India (RBI) has been stepping in periodically to limit excessive intraday swings, forex traders said. However, higher import bills and sustained strength in the greenback continued to weigh on sentiment.The rupee's latest move follows a sharp fall on Thursday, when it closed at 96.25 per US dollar after slipping below the psychologically important 96 level.
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