The Indian rupee has dropped four paise to 94.95 against the US dollar on Monday amid a decline in crude oil prices and softening of the US dollar.
The currency found little support from the weakening dollar after President Trump on Sunday announced that US forces were going to begin operation to free ships stuck in the Strait of Hormuz.
The strong response from the Iranian side has triggered uncertainty in the global markets, with investors closely tracking the development in the ongoing U.S.–Iran negotiations.
On Thursday the currency settled at 94.91, after briefly touching the all-time low of 95.33. Indian financial markets were closed on Friday, May 1 on account of Maharashtra Day and International Labour Day.
Brent crude for delivery in July fell to around $105.50 per barrel during the Asian trading hours. Even though both Iran and the United States are engaged in a diplomatic brawl over the Strait of Hormuz and nuclear issue, Brent crude was most recently observed trading close to $108 per barrel.
The Indian currency has come under immense pressure in the recent trading sessions, dropping nearly two per cent over the last eight days.
Currency rates continue to fluctuate due to movements in the US dollar triggered by crude oil prices.
Gold rates declined on the MCX in morning deals on Monday, amid an uptick in the US dollar and persisting concerns over a spike in inflation due to higher-for-longer crude oil prices.
Though the prices may vary across states, for example, the rate of 10 grams of 24k gold in Chennai stands around ₹149,111, while the same amount and quality would cost ₹150,453 in New Delhi.
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