Currency Buzz: INR Weakens Amid Higher Crude Prices

23 Mar 2022 , 04:53 PM

Concerns regarding higher crude oil prices continue to weigh down the Indian rupee that weakened towards 76.30 against the dollar. The rupee on Wednesday, pared initial gains to settle 14 paise lower at 76.32 (provisional) against the US dollar due to month-end dollar demand from importers and rising crude prices amid geopolitical uncertainties. Crude oil prices crossed $110 per barrel amid fears of prolonged supply disruptions as the US president heads to Europe with harder-hitting sanctions on Russia. Oil prices impact Indias current account deficit and trade balance significantly as India imports more than 80% of its oil needs. At the interbank foreign exchange market, the rupee opened strong at 76.08 against the American currency but could not hold the momentum and entered negative territory during the session. The domestic unit finally settled at 76.32 against the greenback, down 14 paise from the previous close. On Tuesday, the rupee had settled flat at 76.18 against the American currency.

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