The Indian rupee closed at a provisional rate of 95.57 against the U.S. dollar, a decline of 5 paise, on Friday. The fall was attributed to a correction in crude oil prices and suspected intervention by the Reserve Bank of India.
The rupee began the session on a negative note but managed to narrow its losses as traders noted a slight recovery in domestic stocks and profit booking on higher crude prices. Despite the initial dip, the currency remained under pressure from global risk‑aversion and rising oil costs, marking a fifth straight session of decline.
In the interbank market the rupee opened at 95.70, slid to a low of 95.79, then rebounded to a high of 95.51 before settling at 95.57. Senior research analyst Dilip Parmar of HDFC Securities described the move as part of the rupee’s steepest weekly loss since mid‑May, driven by surging oil prices and climbing bond yields. He also highlighted persistent geopolitical tensions and weak monsoon rainfall as dampening domestic sentiment, despite RBI and government support measures.
Looking ahead, the spot USD/INR is expected to face resistance near 95.80 and support around 95.15, suggesting a period of consolidation. Brent crude futures fell 3.28% to $104.10 per barrel. Research analyst Anuj Choudhary of Mirae Asset Sharekhan noted a negative bias due to global risk‑off sentiment and inflation concerns, while acknowledging that RBI intervention could stabilize the rupee. He projects the currency to trade between 95.45 and 95.90. On the domestic front, the Sensex fell 120.83 points to 74,781.76 and the Nifty dropped 79.70 points to 23,398.10, with foreign institutional investors selling equities worth Rs 582 crore on a net basis.
