Rupee ends near record lows even as oil prices slide; closes at 88.79/$

Indian Rupee today: The domestic currency closed 12 paise lower at 88.79 against the greenback on Tuesday

The Indian Rupee closed near record lows once again on Tuesday, even as crude oil prices fell over 2 per cent while the dollar edged higher slightly. 

 

The domestic currency closed 12 paise lower at 88.79 against the greenback on Tuesday, according to Bloomberg. The currency has fallen 3.72 per cent so far this year, the worst-performing Asian currency. 

 

Meanwhile, the one-month volatility in the dollar-rupee pair has crashed to the year’s lowest level this month, according to Bloomberg. The currency has remained in a narrow range, unable to breach the 89-per-dollar level after reaching fresh lows. 

Rupee traded weakly, pressured by weakness in domestic equity markets and rising commodity prices, particularly gold and silver, which could increase import costs, Jateen Trivedi, VP research analyst - commodity and currency, LKP Securities, said. "The focus now shifts to the upcoming US CPI data, which will play a key role in guiding dollar and rupee movements. The rupee is expected to trade within a range of 88.45-89.25."

 

Trade tariffs remain a concern for investors, while an Indian trade team is in the US to continue and finalise talks, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. "The rupee's cautious appreciation and technical positioning near key levels such as 88.80 and 88.50 suggest a finely balanced market."

 

On Monday, India’s retail inflation moderated significantly in September to hit a 99-month low of 1.54 per cent, with food prices dropping 2.3 per cent from a year ago, marking the most benign print for the volatile and essential component of the household spending basket since December 2018.

 

The dollar index was slightly lower amid a flip-flop in US-China trade tensions. analysts said. The measure of the greenback against a basket of six major currencies was down 0.10 per cent at 99.37.

 

In commodities, crude oil prices remained higher on improving US-China relations and the end of the war in Gaza. Brent crude price was lower by 2.16 per cent at 61.95 per barrel, while WTI crude prices were lower by 2.27 per cent at 58.18 per barrel, as of 3:35 PM IST.