Rupee Falls Amid Dollar Demand and Rising Crude Prices

The Indian Rupee declined by 5 paise to settle at 83.73 against the US Dollar, driven by increased demand for the dollar and a rise in crude oil prices. Despite an initially stronger opening, the currency could not sustain gains. The domestic equity market saw record highs.

The Indian Rupee declined by 5 paise to settle at 83.73 against the US Dollar on Thursday amid heightened demand for the dollar and surging crude oil prices.

Initially, the rupee opened stronger at 83.67, buoyed by weakness in the US dollar after the US Federal Reserve hinted at a potential rate cut. Nonetheless, the currency struggled to maintain its gains and fell to a low of 83.75 during the day's trading. Ultimately, the domestic unit closed at 83.73, down 5 paise from the previous day's close of 83.68.

Forex traders indicated that the rupee's losses were amplified by month-end dollar demand and rising crude oil prices. Additionally, the dollar index, which measures the strength of the dollar against six major currencies, rebounded to 104.17 in late Asian trade. Concurrently, Brent crude futures climbed 0.78% to $81.47 per barrel. Despite this, India's 30-share BSE Sensex and the Nifty index both closed at record highs.

(With inputs from agencies.)