October 12, 2021 by admin

Rupee slips to 15-month low on rising crude oil prices

New Delhi, Oct 12 Rising oil prices, along with high US bond yields, pushed the Indian currency to a 15-month low on Tuesday.

The rupee ended at Rs 75.51 per US dollar on Tuesday.

Besides, crude oil rose towards $84 a barrel supported by a rebound in global demand.

Furthermore, inflation and policy-tightening fears has sent short-dated US Treasury yields to 18-month highs.

“Indian rupee drifted lower on back of surge in crude oil prices and stronger dollar against major trading currencies. Global energy sector has been witnessing supply shortages and higher demand. As a net importer, India’s trade balance could disturbed with surge in crude, coal and gas prices,” HDFC Securities research analyst Dilip Parmar said.

“There were dollar outflows from corporates and dollar demand from oil companies which weighed in last three days. Near term bias for rupee remains bearish and sustainable trade below 75.70 will open 75.90 and 76 level while 75.30 becomes resistance.”

Motilal Oswal Financial Services forex & bullion analyst Gaurang Somaiya said: “Rupee traded lower on the back of oil related buying witnessed in the market. Dollar continued to strengthen in the Asian session that kept the rupee weighed down. Euro and pound trade sideways, although INR crosses saw support amidst depreciation in rupee.”

“Today focus will be on the IIP and inflation data on the domestic front. we expect the USDINR (Spot) to quote sideways to positive.”