The Indian rupee on Monday opened 37 paise lower against the US dollar amid rising crude oil prices and escalating tensions between the United States and Iran. At the interbank exchange market, the rupee was trading 37 paise lower at 95.70 against the US dollar in early trade.
This comes after multiple military strikes were carried out by the United States on nearly 90 targets in Iranian port cities following the IRGC targeting a ship in the Strait of Hormuz without justification.
The rupee is under pressure as crude oil prices, which were hovering around $70-72 a barrel, have now risen to $80 a barrel on Monday, severely denting investor sentiment.
The rupee had witnessed a marginal rise during the last trading session on Friday as it climbed to 95.33 against the dollar, rising 24 paise.
On the energy front, Brent Crude, the international benchmark, has risen nearly 3 per cent, touching $79 a barrel.
“In the current situation, rising crude oil prices, a firmer DXY and the RBI refilling its reserves all point towards the rupee remaining under pressure.
On the technical charts, the Rs 95.80 to Rs 96 zone is a strong resistance area, and this level is expected to break soon,” Amit Pabari, managing director at CR Forex Advisors, said.
Though US President Donald Trump said that Hormuz, which connects Persian Gulf energy producers to global markets, was open, Iran has claimed otherwise.
Also read: Rupee gains 24 paise to 95.23 against US dollar in early trade
Follow us
