The Indian rupee closes at 95.55 as oil prices hit $105 per barrel
Oil demand pressure and Strait of Hormuz tensions pushed the currency down despite earlier gains.
The Indian rupee closed weaker on Friday at 95.55 against the U.S. dollar, down from a previous close of 95.44. Oil prices climbed to $105 per barrel amid new concerns regarding the Strait of Hormuz. Traders observed significant demand for dollars from oil companies and state-run banks selling currency around the 95.80 level. The local unit hit an intraday low of 95.80 before recovering slightly. Earlier in the month, the rupee reached a two-month high near 94.30, but those gains were largely reversed this week due to global market factors. Anil Bhansali, head of treasury at Finrex, noted that oil companies required substantial dollars. Reserve Bank officials indicated they may sell more foreign exchange to prevent further depreciation. The currency remains vulnerable as global crude prices continue to fluctuate with geopolitical risk in the region.
