The Indian rupee slipped 6 paise to 95.54 against the US dollar in early trade on Thursday due to a firm dollar and rising global crude oil prices.
Elevated energy import costs and broader geopolitical tensions in West Asia continue to weigh on the domestic currency.
The rupee extended its losses into the third straight trading session since Tuesday when it slid 0.6 per cent against the dollar to settle at 95.56.
It lost nearly 59 paise from Tuesday’s 94.97, as rising crude oil prices weighed on Asian currencies after Trump’s comments that the deal to end the Iran war is over.
Tensions in the Middle East region and the resurgence of military strikes between the US and Iran have lifted the risk premium amid heightened volatility.
As a result, the rupee is expected to come under more pressure in the coming days, with the RBI setting a resistance level at 95.8 and support at 94.95, with the bias now favouring the dollar.
At the interbank exchange market, the rupee opened 6 paise lower than its previous close against the US dollar.
On Tuesday, the rupee gained 47 paise to close at 94.97 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.13, up 0.11 per cent.
Also read: Crude oil prices touch $80 a barrel in early trade
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