Mumbai, July 20: The rupee fell 6 paise to 96.36 against the US dollar on Monday, on risk aversion in global markets and a surge in crude oil prices.
Forex traders said escalating US-Iran conflict and rising US Treasury yields weighed on the rupee.
At the interbank foreign exchange, the rupee opened at 96.53 against the US dollar and traded in the range of 96.35 to 96.53 during the day. The domestic unit finally settled for the day at 96.36, down 6 paise from its previous close. On Friday, the rupee gained 12 paise to settle at 96.30 against the US dollar. “We expect the rupee to trade with a negative bias on escalating conflict between the US and Iran over the weekend and elevated crude oil prices. “However, diplomatic talks between the two nations may prevent a sharp fall in the Rupee. Any intervention by the RBI may also support the rupee at lower levels,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.
USD-INR spot price is expected to trade in a range of 96.10 to 96.70, Choudhary added. According to Dilip Parmar — Senior Research Analyst, HDFC Securities, the recent spike in Brent crude, driven by geopolitical tensions, has pressured emerging market currencies like the Indian rupee. However, aggressive and anticipated interventions by the Reserve Bank of India (RBI) have effectively capped the currency’s downside, Parmar added.(PTI)
From a technical standpoint, the spot USD-INR pair encounters resistance at 96.50, while key support remains around 95.80, Parmar added. (PTI)
