The Indian rupee came under pressure in early trade on September 8, falling 10 paise to Rs 94.66 against the US dollar as rising crude oil prices and escalating tensions in the Middle East weighed on investor sentiment. The currency opened at Rs 94.49 at the interbank foreign exchange market before weakening to Rs 94.66.
This decline follows a 13-paise fall on September 7, when the rupee closed at Rs 94.56 against the dollar.
Crude Prices Add Pressure
The latest drop in the rupee came as Brent crude prices climbed towards USD 98 per barrel. Brent futures rose 0.63% to around USD 97.61, driven by concerns over possible disruptions to oil supplies amid escalating US-Iran tensions. Typically, rising oil prices negatively affect the rupee due to India’s heavy reliance on imported oil, as any increase in the country’s import bill leads to higher dollar requirements.
These developments have raised concerns regarding the transport of energy through the Strait of Hormuz, a critical route for oil shipments. According to Reuters, Brent crude was at about USD 97.49 per barrel on Tuesday.
Markets Await Key Economic Cues
Market participants are now watching upcoming inflation data from India and the US for clues about the direction of interest rates and currency markets. The US Federal Reserve’s September 16 policy meeting will also remain a key focus.
The dollar index stood around 98.80, while analysts expect the rupee to remain range-bound if crude prices stay elevated but RBI support continues.
Leave a Reply