New Delhi: The Indian Rupee today settled at 95.70 per US Dollar after gaining 3 paise.
The currency opened at Rs 95.57 in the morning and moved in a narrow range of Rs 95.56-95.72 during the session.
The rupee had closed at Rs 95.73 per USD yesterday, gaining just 1 paisa.
The latest movement came amid mixed global and domestic factors, with the dollar weakening but crude oil prices remaining above USD 90 a barrel.
The US dollar index fell to its lowest level since late May, after the US Treasury announced that it would double its buyback operations for longer-dated Treasury bonds.
The move pushed US long-term yields lower and reduced the dollar’s yield advantage, providing some support to emerging-market currencies, including the rupee. The dollar index was trading at 98.61, down 0.22 per cent, during the session.
However, the benefit from the weaker dollar was limited by elevated crude oil prices. Forex traders said crude oil prices above USD 90 per barrel could continue to pressure India’s import bill and, in turn, weigh on the rupee.
India is heavily dependent on crude imports, making the currency sensitive to movements in global oil prices.
The rupee’s narrow movement comes as global markets assess the impact of higher energy prices and geopolitical tensions.
Brent crude has remained elevated amid continuing uncertainty in the Middle East, adding pressure to India’s external balance. (BVI)
