Rupee Declines Amid Rising Crude Prices and Strong Dollar Demand

The rupee fell 5 paise to 83.73 against the US dollar as demand for the dollar increased along with rising crude oil prices. Despite opening higher due to US Federal Reserve hints of a rate cut, the rupee couldn't sustain gains. Rising crude prices and month-end dollar demand impacted the exchange rate.

The rupee dropped by 5 paise to settle at 83.73 against the US dollar on Thursday, driven by heightened demand for the dollar and increasing crude oil prices.

Initially opening higher at 83.67 due to a weak US dollar in international markets following indications of a rate cut by the US Federal Reserve, the rupee failed to maintain its gains, falling to a low of 83.75. The domestic unit closed at 83.73 provisionally, down by 5 paise from the previous day's close.

In the interbank foreign exchange market, the rupee had closed at 83.68 against the US dollar on Wednesday. Forex traders noted that gains from a weak dollar were counterbalanced by end-of-month dollar demand and climbing crude prices.

(With inputs from agencies.)