Rupee closes at 96.59 against US dollar

The rupee depreciated by 34 paise to close at 96.59 (provisional) against the US dollar on Wednesday, weighed down by surging crude oil prices and heightened geopolitical uncertainty. Forex traders said risk aversion in global markets and a negative trend in domestic equities further dented investor sentiments.

At the interbank foreign exchange, the rupee opened at 96.36 against the US dollar and traded in the range of 96.25 to 96.57 during the day. The domestic unit finally settled at 96.59 (provisional), lower by 34 paise from its previous close. On Tuesday, the rupee had settled higher by 11 paise at 96.25 against the American currency. “Following a brief rally on Tuesday, the Indian rupee faces downward pressure amid surging crude oil prices and heightened geopolitical uncertainty,” said Dilip Parmar — Senior Research Analyst, HDFC Securities.

According to Parmar, renewed concerns over US tariff rhetoric have further dampened sentiment. Spot $INR remains on a bullish track, with near-term support pegged at 96.10 and a retest of the record high around 97 on the horizon, he said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.07 per cent at 101.10.