Rupee slips below 96 per dollar level in early trade
· Business · Economic Times, LiveMint
The Indian rupee depreciated by 19 paise to breach the 96 level against the US dollar in early trade on Thursday, marking its lowest point in over two months. The decline follows a 25-basis-point interest rate hike by the US Federal Reserve, which strengthened the greenback and pressured the domestic currency. Market sentiment was further dampened by elevated Brent crude oil prices, which are currently hovering at USD 105 per barrel. The currency later pared some losses to trade with a gain of 10 paise, a shift analysts attribute to suspected intervention by the Reserve Bank of India. This volatility follows a seven-session downward trend that saw the rupee lose more than 1.4 per cent of its value since September 4.
Why it matters
A weaker rupee increases the cost of importing essential commodities like crude oil, which can drive domestic inflation and impact the purchasing power of Indian consumers. The currency's volatility also influences foreign investment flows and corporate earnings for companies reliant on imports.
Read the original report — Economic Times
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