Rupee falls 13 paise to 91.94 against the dollar, all eyes on crude prices

Indian Rupee

The rupee slipped 14 paise at the open on March 11 as volatile Brent crude and persistent foreign fund outflows weighed on sentiment. Aggressive dollar-selling by the Reserve Bank of India (RBI) continues to anchor the currency, preventing the slide back below the 92 level mark.

The rupee was trading at Rs 91.93 against the dollar after ending the previous session at Rs 91.81. It had slipped to Rs 92.19 intraday but recovered to end below 92 level.

After a huge spike, the benchmark Brent crude was trading below $100 a barrel following reports that the International Energy Agency (IEA) has proposed the largest release of oil reserves in its history.

The rupee remains under pressure due to elevated oil prices, with further supply disruptions expected as Iran continues to block the Strait of Hormuz. To prevent the rupee from sharp depreciation, the RBI has consistently intervened in the markets by selling the greenback.

“The RBI is clearly uncomfortable with the rupee falling again and has ensured that the level of 92 is not breached, at least for now. The rupee has remained vulnerable to the oil shocks and FPI selling but has been well contained by the RBI recently despite consistent outflows,” analysts at Finrex Treasury Advisors said.

Moneycontrol reported on March 10 that the finance ministry was monitoring the rupee “every hour” and was tracking if the currency slide would trickle down to the Centre’s fiscal math.