Business
Rising Dollar and Oil Prices Weigh on Indian Rupee
The Indian rupee weakened further on Friday, depreciating by 21 paise to close at a record low of 95.97 against the US dollar amid continued strength in the अमेरिकी currency and global market pressures.
The Indian rupee on Friday depreciated by 21 paise to close at a record low of 95.97 against the US dollar in the foreign exchange market.
Market analysts attributed the decline to continued strength in the US dollar, elevated global crude oil prices, and sustained demand for the American currency from importers and financial institutions.
The dollar index, which measures the strength of the US dollar against a basket of six major global currencies, was trading at 99.15 during intra-day trade, indicating broad-based strength in the greenback.
A weaker rupee generally increases the cost of imports such as crude oil, electronics, and industrial raw materials, potentially adding pressure on inflation and trade balances. However, it can also benefit exporters by making Indian goods and services more competitive in international markets.
Currency markets have remained volatile amid global geopolitical tensions, fluctuating oil prices, and uncertainty surrounding international economic conditions and interest rate movements.
The rupee has been under pressure in recent weeks due to rising crude oil prices and increased demand for dollars in global markets.
Financial experts said the Reserve Bank of India may continue monitoring currency movements closely to manage excessive volatility in the forex market.