Forex▼ Bearish
Rupee at two-month low as oil prices stay in focus
Rupee hit 83.52, its lowest since June, as oil importers bought dollars and the greenback firmed. RBI likely intervened. Traders watch 83.60-83.65 zone.
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The rupee slipped to a two-month low on Tuesday, with traders pointing to sustained dollar demand from oil importers and a broadly stronger greenback. The local currency closed at 83.52 against the dollar, its weakest since mid-June.
Oil prices held near $82 a barrel for Brent crude, keeping importers active in the spot market. India meets about 85% of its crude需求 through purchases abroad, so every sustained rally in oil pressures the rupee through higher hedging and settlement demand.
The dollar index edged up 0.2% on the day, adding to headwinds for emerging-market currencies. Traders said the Reserve Bank of India likely intervened through state-run banks to smooth the move, selling dollars near the 83.55 level. The RBI typically caps sharp falls but does not defend a specific line.