The rupee fell 6 paise to 95.42 against the US dollar in early trade on Wednesday, weighed down by the sharp rise in Brent crude toward USD 90/bbl, as hopes of a quick US-Iran agreement and reopening of the Strait of Hormuz faded.
Forex traders said the principal driver behind the rise in Brent crude prices is the uncertainty over the Strait of Hormuz.
Markets are increasingly sceptical about a quick US-Iran agreement, while reports of attacks on shipping have renewed concerns about physical supply, they said.
At the interbank foreign exchange, the rupee opened at 95.40 before slipping further to 95.42, down 6 paise from its previous close.
On Tuesday, the rupee declined 6 paise to settle at 95.36 against the US dollar. With Brent now near USD 90 per barrel, INR/USD at 95.50 becomes the immediate level to watch, followed by 95.8096.00 if oil remains elevated, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Brent crude, the global o
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