The rupee depreciated 7 paise to 95.68 against the US dollar in early trade on Tuesday, weighed down by elevated crude oil prices and persistent demand for greenback.
Forex traders said Brent crude near USD 91 per barrel increased oil-related dollar demand and the Reserve Bank’s earlier-than-expected closure of the concessional FCN (B) forex-swap facility raised concerns over future dollar inflows.
At the interbank foreign exchange, the rupee opened at 95.68, down 7 paise from its previous close. On Monday, the rupee depreciated 19 paise to close at 95.61 against the US dollar.
The rupee opened lower as oil prices rose with the US and Iran remaining at odds over the Strait of Hormuz and there was no progress on a peace deal, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.63, down 0.01 per cent.
Brent crude, the
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