Rupee Under Pressure as Rising Oil Prices Push Currency to 95.46

MUMBAI, Sep 10: The Indian rupee came under renewed pressure on Thursday, weakening by 38 paise to close at 95.46 against the US dollar, as a sharp rise in crude oil prices increased concerns over India’s import costs.

The rupee opened at 95.15 against the dollar in the interbank foreign exchange market. It gradually lost ground during the session and ended at 95.46, compared with its previous close of 95.08.

The main pressure on the currency came from Brent crude, which moved above the $102-per-barrel mark. Higher oil prices are a concern for India because the country relies heavily on imported crude to meet its energy needs.

Renewed selling by foreign portfolio investors also weighed on the rupee. After providing support through positive flows in July and August, foreign investors have turned more cautious, adding pressure to the currency.

The combination of expensive crude oil and foreign fund outflows is increasing pressure on India's external finances and could raise the cost of imports if the trend continues.

The rupee's movement will remain closely linked to crude oil prices, global market conditions and foreign investment flows in the coming days. Continued volatility in oil markets could keep the currency under pressure, while stable capital flows and supportive measures from the Reserve Bank of India could provide some relief.

For the Indian economy, a stable rupee remains important as it helps manage the cost of imported energy, supports businesses dependent on imported inputs and limits additional inflationary pressure.