Rupee ends at 96.34 against dollar as global uncertainty keeps pressure on currency

The Indian rupee closed at 96.34 against the US dollar on Thursday, slipping slightly despite gains in several Asian currencies and a decline in global crude oil prices. Market analysts said the domestic currency remained under pressure due to strong demand for dollars from importers and the settlement of non-deliverable forward (NDF) contracts, which offset the positive impact of lower oil prices.

Although Brent crude fell below $85 per barrel, easing concerns over India's import bill, traders said persistent demand for the US dollar and global uncertainty linked to geopolitical tensions in the Middle East continued to weigh on the rupee.

The Reserve Bank of India's earlier measures to attract foreign currency inflows have provided only limited support, with the rupee remaining close to its weakest levels in nearly two months.

Currency experts expect the rupee to remain sensitive to movements in crude oil prices, US economic data and developments in global financial markets. Any further escalation in geopolitical tensions or sustained strength in the US dollar could keep pressure on the Indian currency in the coming days, while RBI intervention may help limit sharp volatility.