Rupee Closes At Record Low Against Dollar Amid Rising Crude Oil Prices
The domestic currency closed at 85.97 against the greenback.
The Indian rupee weakened by 11 paise to close at an all-time low against the US dollar on Friday, just three paise away from hitting the 86 mark.
The domestic currency closed at 85.97 against the greenback in comparison to a close of 85.86 a day ago, according to Bloomberg data.
"The FIIs withdrew Rs 10,587.2 crore yesterday and Rs 28,842 crore this month, reflecting risk aversion," Amit Pabari, managing director of CR Forex Advisors, said. "Meanwhile, rising crude prices amplify the strain on India’s current account deficit."
"Indian rupee may not be able to sustain the gains with a stronger dollar index and rising oil prices," Anil Bhansali, executive director of Finrex Treasury Advisors LLP, said. "The 'buy dollars at dips' trade continues."
The Brent crude is up 1.74% at $78.66. The dollar index is 0.01% down at 109.16.
"There could be supply disruptions due to tightening sanctions, amid low stockpiles, freezing temperatures and improving sentiment regarding Chinese stimulus measures," Bhansali said.
"Globally, the US dollar continues to dominate..., driven by the Federal Reserve's hawkish stance, as they anticipate slower rate cuts and robust economic data," Pabari added.
