Rupee drops past 96 per dollar
The currency hit a two-month low on Tuesday after crude oil prices climbed, raising concerns about India’s import bill, officials said.
Mateo Fernandez ·
The rupee slipped past 96 per dollar in intraday trade on Tuesday, its weakest in two months, after crude prices rose, officials said.
Oil import-cost pressure
Data showed crude futures climbed on Tuesday, and officials said the move coincided with renewed concern over India’s fuel import bill, which pushed the currency lower. Market participants noted the timing of the oil move as the proximate driver of the intraday weakness.
Analysts said the rupee’s sensitivity to oil leaves it vulnerable when energy prices rise because a larger import bill can widen the current account gap and pressure foreign-exchange demand. Traders also flagged month-end flows as an added near-term constraint on liquidity, amplifying moves in spot FX.
Watch the next 48 hours for further oil-price direction and any changes in offshore flows; if crude holds at elevated levels over that window, officials warned the rupee could remain under pressure, while a pullback in oil would likely ease immediate FX strain.