Indian Rupee Falls 56 Paise to 95.74 Against US Dollar Amid Rising Crude Oil Prices
The Indian rupee weakened by 56 paise to close at 95.74 against the US dollar as geopolitical tensions and rising crude oil prices strengthened the dollar and weighed on investor sentiment.
Prasanth Subramani 
The Indian rupee came under pressure in Monday's foreign exchange trading session, declining by 56 paise to close at 95.74 against the US dollar amid rising geopolitical tensions and a sharp increase in crude oil prices.
Forex traders said the surge in global crude oil prices strengthened the US dollar and negatively impacted emerging market currencies, including the Indian rupee. Growing geopolitical uncertainties further added to investor concerns and increased demand for safe-haven assets.
In the interbank foreign exchange market, the rupee opened at 95.35 per US dollar. During the session, it briefly strengthened to an intraday high of 95.15, but later reversed course and ended the day at 95.74, down 56 paise from the previous close.
The decline comes after the rupee had recorded gains in the previous trading session. On Friday, the currency strengthened following measures announced by the Reserve Bank of India to encourage foreign capital inflows and improve foreign exchange liquidity.
Those RBI measures had helped the rupee appreciate by 56 paise, allowing it to close at 95.18 against the US dollar in the previous session.
Market analysts noted that rising crude oil prices remain a key concern for India, as the country imports a significant portion of its energy requirements. Higher oil prices increase demand for dollars and can put pressure on the domestic currency.
Investors will continue to monitor developments in global energy markets, geopolitical events, foreign investment flows, and RBI policy measures for clues on the future direction of the rupee.
Despite recent volatility, analysts believe the Indian currency's performance will largely depend on how global commodity prices and international financial conditions evolve in the coming weeks.
