Rupee dips modestly as oil prices rise and foreign outflows persist

The Indian rupee opened at 96.29 per US dollar and moved down to 96.39 in early trade on Tuesday, marking a modest decline amid higher crude oil prices. Treasury executive Anil Kumar Bhansali noted that the Reserve Bank is intervening to keep the rupee around 96.33, even as foreign portfolio investors and oil companies continue to seek dollars. The dollar index fell slightly, providing some support to the rupee, while domestic equity markets posted gains.

Brent crude traded above the $100 mark, adding pressure on the currency. The central bank's policy repo rate remains at 5.25 percent, unchanged since its last hike in February 2023.