Rupee Declines for Third Consecutive Day, Closing at 93.79/$
Rupee falls for a 3rd day, loses 30 paise to 93.79/$
The Economic Times
Image: The Economic Times
The Indian rupee fell by 30 paise to close at 93.79 per dollar, marking its third consecutive decline. This drop is attributed to rising crude oil prices, month-end dollar demand, and geopolitical tensions in West Asia, including threats from US President Donald Trump regarding Iran.
- 01Rupee closed at 93.79/$ after losing 30 paise.
- 02The decline is attributed to rising crude prices and geopolitical tensions.
- 03Dollar demand from defense companies exerted additional pressure on the rupee.
- 04Market analysts predict the rupee may reach around 94/$ before stabilizing.
- 05The Reserve Bank of India (RBI) is managing oil import routes to stabilize the currency.
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The Indian rupee experienced a decline for the third consecutive day, closing at 93.79 per dollar after losing 30 paise. This downward trend is largely linked to rising crude oil prices, which surpassed $98 a barrel, and escalating uncertainties surrounding a peace agreement in West Asia. Additionally, dollar demand from defense companies contributed to the rupee's weakness. The local currency opened lower at 93.69/70 against the previous close of 93.50. Analysts suggest that while the rupee may touch levels around 94 against the dollar, it is expected to stabilize below 93 again, as the Reserve Bank of India (RBI) has implemented measures to cap speculative trading windows.
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The depreciation of the rupee may lead to increased costs for imports, particularly oil, which could affect fuel prices and overall inflation in India.
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