Rupee Extends Losses
Rupee hovers around 95.4 per dollar amid rising oil prices and weaker Asian currencies
The Indian rupee hovered around 95.4 per dollar, remaining under pressure as rising oil prices and weaker Asian currencies weighed on sentiment.
The rupee has extended losses for another session since breaking past the 95 per dollar level last Wednesday, as uncertainty over the end of the US-Iran conflict has driven oil prices higher.
Brent crude has risen 7% this week and was approaching $90 a barrel, prompting importers to step up hedging and increasing dollar demand, which has offset positive sentiment from RBI interventions.
The central bank has been selling dollars through state-run banks in both trading sessions this week, with traders saying the rupee would likely have weakened further without the support.
Meanwhile, US inflation data due later Wednesday could provide clues on whether the Federal Reserve will raise interest rates next month, with markets currently split on the prospect of a hike.