NEW DELHI — The Indian rupee weakened past the 96 mark against the U.S. dollar Friday as rising crude oil prices, global market pressure and geopolitical tensions tied to the Iran conflict weighed on the currency.
The rupee opened at 95.86 in the interbank foreign exchange market and slipped to 95.94 in early trade. It had touched an all-time low of 95.96 in the previous session.
Pressure on the currency increased after Indian oil marketing companies raised petrol and diesel prices by Rs 3 per liter with immediate effect.
Analysts said the rupee has been under sustained pressure in recent weeks and has become one of Asia’s worst-performing currencies as India’s import bill faces strain from higher energy costs.
Market sentiment also remained fragile after talks between U.S. President Donald Trump and Chinese President Xi Jinping failed to produce major progress on key geopolitical issues, including the U.S.-Iran front.
Despite the rupee’s weakness, domestic equity markets showed resilience during intraday trading. The BSE Sensex rose 471.64 points, or 0.62%, while the Nifty 50 gained 150 points, or 0.63%, to reach 23,839.30.
Crude oil prices continued to rise. Brent crude climbed 3.46% to $109.38 a barrel, while U.S. West Texas Intermediate crude advanced 4% to $105.24 a barrel.
A senior official said the increase in petrol and diesel prices was modest compared with the losses being absorbed by public-sector oil companies as global crude prices remain above $100 a barrel. (Source: IANS)
