The rupee depreciated 4 paise to close at 96.57 (provisional) against the US dollar on Thursday, as heightened hostilities in West Asia kept global crude oil prices elevated.
However, a likely intervention by the RBI provided support to the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 96.53 and traded in a narrow range of 96.45-96.59 during the day before eventually settling at 96.57 (provisional), down 4 paise from its previous close.
On Wednesday, t domestic unit depreciated by 28 paise to close at 96.53 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading flat at at 101.12. Brent crude, the global oil benchmark, was trading 2.21 per cent higher at USD 96.15 per barrel in futures trade.
According to analysts, the negative factor impacting the rupee is the sharp spike in Brent crude following the escalation of the conflict in West Asia, particularly the attack on Saudi oil tankers by the Houthis. RBI’s intervention in the market will prevent sharp depreciation in the rupee, it added.