Indian rupee falls past 96 per dollar to two-month low on rising oil prices
The rupee touched 96.1475 per dollar, a two-month low, after Brent rose 2% to $107.4/bbl on Middle East supply disruption concerns. Portfolio outflows continued, with overseas investors net selling $3.7bn of Indian stocks and bonds in September.
(Updates post market open) By Jaspreet Kalra MUMBAI, Sept 29 (Reuters) — The Indian rupee fell past the 96 per dollar mark on Tuesday to touch a two-month low as oil prices climbed, deepening investor worries about the impact on the energy-importing economy and fuelling portfolio outflows. 2% on the day, before trimming losses on likely intervention by the Reserve Bank of India. 4 per barrel as lingering concern over Middle East supply disruptions brought about by the US-Iran conflict outweighed signs of recovering crude exports from the region. O/R Higher oil prices also weighed on regional stocks, with MSCI's gauge of Asian equities down nearly 1%.
Stocks in Mumbai were also down nearly 1%, while global bond yields continued to drift higher as investors wagered that central banks would need to raise rates to fight inflation. Persistent inflation, resilient economic growth and expectations of global rate hikes are also leaving India's central bank with little reason to keep rates steady at its October policy meeting. A rate hike would support the rupee by raising the cost of betting against it and boosting the appeal of Indian debt at a time when equities have struggled to attract inflows. 6 billion in outflows.
20 as a key resistance zone. 00," said Amit Pabari, managing director at forex advisory firm CR Forex. com)