On Tuesday, the Indian rupee experienced a marginal decline, settling 8 paise lower than the US dollar. The currency’s slide to 82.71 per dollar came from increased dollar acquisitions by major oil corporations and significant importers, a slight shift from its previous close of 82.63.
The dollar index captures the broader perspective of the US dollar’s strength. This metric, which contrasts the dollar’s might against six other major currencies, marked a slight uptick of 0.01%, positioning itself at 104.07.
Factors contributing to the rupee’s slip included the reinvigoration of the dollar index and a noticeable jump in global crude oil prices, which exerted added pressure on the Indian currency.
In contrast, the rupee had witnessed a modest rise of 2 paise on Monday, finishing at 82.63 per dollar. This fluctuation was underlined by sustained dollar procurement by oil enterprises. When interviewed by Reuters, a prominent foreign exchange dealer from a nationalized bank emphasized the active role of significant importers in acquiring the US currency.
The dealer pointed out an expected range for the rupee: “Anticipating the rupee to oscillate between 82.55 and 82.85, we foresee intensified dollar sales as it approaches the 82.80-85 bracket.” Market watchers are now focusing on upcoming US economic indicators: Thursday’s personal consumption expenditures price index and Friday’s non-farm payroll data for August.
In the backdrop, global oil prices are increasing, further burdening the rupee. Brent crude showcased a 0.73% increase, touching $85.04 per barrel. Concurrently, the US West Texas Intermediate crude (WTI) climbed 0.72%, reaching $80.68.