Rupee ends 18 paise down on rising dollar index, oil prices

Rupee

The Indian rupee ended 18 paise lower on January 16 due to a sharp jump in Brent crude prices, rising dollar index and outflows from foreign investors.

The domestic currency ended at 86.5500 against the dollar against a close of 86.3625 in the previous session.

The dollar index, which tracks the US currency's value against six of its major peers, rose to 109.113.

The benchmark Brent crude rose sharply due to large draw in US stockpiles and potential supply disruptions caused by new American sanctions against Russia, though the Gaza ceasefire deal limited gains.

Brent futures were up 38 cents or 0.46 percent at $81.65 a barrel.

The rupee saw a sharp recovery on January 15 due to multiple factors such as improved trade balances and Reserve Bank of India (RBI) intervention.

India’s balance of trade data emerged as a key driver, with the trade deficit narrowing to $21.94 billion. The improvement was underpinned by a robust $6 billion growth in exports and $10 billion decline in imports.

The last time India's merchandise trade deficit was lower than the latest figures was in September when it came in at $20.79 billion.