Rupee falls 22 paise to 95.96 per dollar

The rupee fell 22 paise to 95.96 per dollar on Thursday as rising crude, stronger dollar demand and higher global bond yields pressured the currency.

Central bank support reported

Traders said the central bank intervened through state-owned banks to stem the decline, injecting dollars into the market. Such intervention, they said, is aimed at smoothing volatility and meeting sudden importer demand.

Data showed crude oil prices rose on the session, increasing importers' need for dollars and adding to current account pressure, traders said. Because India imports most of its crude, higher oil typically translates into greater demand for foreign exchange.

Global bond yields edged higher, lifting the dollar and making overseas assets more attractive, market participants said. That dynamic tends to pull capital away from local-currency assets and adds pressure on the rupee.

Traders added that tensions between the United States and Iran had heightened worries about higher fuel costs and the prospect of further rate moves abroad, supporting dollar demand.

Market participants said they will watch crude moves and geopolitical developments over the next 48 hours for direction; any sustained rise in oil or yields would likely keep the rupee under pressure.