Indian rupee slides over 1% in three days as oil prices and outflows pressure currency
The rupee fell more than 1% over three sessions, reaching 95.79 per dollar, as high crude oil prices and foreign portfolio outflows weighed on the currency.
The Indian rupee has lost more than one percent across three consecutive sessions, trading at 95.79 per US dollar on Friday. The depreciation is linked to persistently high crude oil prices—still above $100 a barrel—and a net outflow of foreign portfolio investors. While the Reserve Bank of India holds a record $740.80 billion in foreign-exchange reserves and continues to intervene, rising global bond yields and an expanding import bill keep the currency under strain.
Kotak Securities' Anindya Banerjee expects the rupee to test the 96-96.24 corridor, with 95.35 acting as near-term support. Market observers also flag inflation risks from elevated food prices and El Niño-related monsoon weakness. Despite these pressures, strong domestic growth and the RBI's buffer could prevent a sudden, sharp fall.
Why it matters
A weaker rupee raises import costs and inflation risks, affecting Indian consumers and investors.
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