Rupee Slides 19 Paise to 95.61 on Weak Equities, Oil Spike

The rupee fell 19 paise against the dollar on Monday, closing at 95.61 as weak domestic equities and a surge in crude oil prices weighed on sentiment. The Reserve Bank of India's decision to pull forward the FCNR (B) swap facility cut-off added to caution, traders said.

At the interbank market, the currency opened at 95.50 and moved between 95.49 and 95.62 before settling at the provisional close. The previous session had seen a 3-paise gain to 95.42.

The pressure came from two directions. The Sensex dropped 281 points to 77,728, and the Nifty fell 78 points to 24,287. Brent crude futures climbed 0.99% to $89.40 a barrel, extending a rally that has kept the import-heavy rupee on the defensive. The dollar index softened 0.26% to 99.40, offering some cushion against a steeper decline.

Anuj Choudhary, research analyst at Mirae Asset ShareKhan, said the rupee is likely to trade with a slight negative bias as long as the U.S.-Iran deal remains stalled and crude prices stay elevated. His comment echoed a broader market view that the currency lacks a near-term catalyst for recovery.

The RBI on August 14 narrowed the window for its concessional swap facility on FCNR (B) deposits. The facility, which lets banks swap foreign currency deposits for rupees at favourable rates, will now cover only deposits mobilised through August 31, not September 30 as previously planned. The central bank said the programme had attracted $56.84 billion through August 13.