Rupee closes at fresh low of 83.44

Mumbai: The rupee weakened marginally, marking a fresh record closing low versus the US dollar on Thursday, as rising crude oil prices dented market sentiment although likely interventions by the RBI reined in depreciation in the local currency. The rupee closed at 83.4450 per US dollar on Thursday, a new closing low.

On Wednesday, the local unit had closed at 83.4350. So far in 2024, the rupee has depreciated 0.3% against the US dollar on a closing basis.

Crude oil prices closed at their highest levels in five months on Wednesday, with Brent crude futures settling 0.5% higher at $89.35 per barrel, Reuters reported. The recent rise in crude oil prices has largely been driven by concerns over supply constraints caused by the war in the Middle East. Higher crude oil prices threaten to push up India’s trade deficit as the country is a large importer of the commodity.

Amid the volatility in oil prices, importers showed firm demand for the dollar, with the RBI likely stepping in to intervene via dollar sales by state-owned banks once the rupee touched the 83.44-83.45 level, traders said. “Since most positions were from the short side, (market activity) was mostly buying dollars while RBI sold. It did not allow it to go beyond 83.46 today,” said Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors.