New Delhi: The Indian rupee fell 10 paise to close at 95.29 (provisional) against the U.S. dollar as global crude oil prices jumped and dollar- rupee forward premiums fell on Tuesday. The fall comes for the second consecutive time as the Rupee depreciated by 34 paise on Monday.
At the interbank foreign exchange market, the rupee opened at 95.16 against the US dollar, then touched an intraday high of 95.03 and a low of 95.31. At the end of Tuesday’s trading session, the rupee was quoted at 95.29 (provisional), down 10 paise from its previous close. At the end of Tuesday’s trading session, the rupee was quoted at 95.29 (provisional), down 10 paise from its previous close.
The RBI has been putting efforts to contain the Rupee downfall since the domestic unit hit a record low of 96.96 per dollar in mid-May. The dollar rupee forward premiums fall was a result of swaps with the 1-year implied yield down 12 basis points at 3.03%. Forward premiums reflect the cost of hedging against rupee weakness.
The RBI Monetary Policy Committee meeting is scheduled for June 3-5. The six-member MPC, headed by RBI Governor Sanjay Malhotra, will announce its decision on June 5.
Oil fell more than 1% on Tuesday, paring the previous sessions sharp gains, after US President Donald Trump said talks with Iran were ongoing, running counter to a report that Tehran had suspended the negotiations with Washington.