Rupee hits 95.68 as oil above $91 strains RBI defense

Brent crude futures rose 0.52% to $91.34 a barrel, with the US and Iran remaining at odds over the Strait of Hormuz and no progress on a peace deal, said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

"Rupee looks vulnerable to the rising oil prices," Bhansali said. The RBI defended near 95.61 on Monday and may try to hold 95.75 today, he added, "but will allow the depreciation to continue in view of the rising oil prices and consistent demand from oil companies."

On the equity side, the Sensex fell 278 points to 77,450 in early trade, while the Nifty dropped 57 points to 24,230. Foreign institutional investors sold equities worth ₹2,535 crore on a net basis Monday, exchange data showed.