Rupee crosses 84 against dollar due to tensions in Middle East, high crude oil prices

New Delhi| The rupee reached its lowest level so far in the last trading session amid global geopolitical conditions and rise in crude oil prices. The rupee fell 84.09 against the US dollar for the first time. The rupee has been trading at 84.09, down 0.12, due to the recent rise of the dollar index from $100.50 to $102.40 and remaining stable.

According to trade experts, tension in the Middle East is the reason for this. For this reason instability persists. Due to the current situation, oil prices will remain high and the rupee will remain weak in the short term. Brent crude rose to $78.92 a barrel on September 30 from about $69 a barrel.

Meanwhile, foreign portfolio investors (FPIs) have sold shares worth Rs 55,000 crore in the Indian stock market in the last nine days. The rupee rose to a day high of 83.96 in the last trading session, but closed at an all-time low of 84.09 (provisional).

“Continuous FII withdrawals from Indian markets have further weakened the rupee, indicating the possibility of further further decline”, said Jatin Trivedi of LKP Securities.

If the rupee remains below 84.00, the weakness of the rupee may increase to 84.25-84.35. Market experts say a correction is possible if the 84.20-84.35 range remains between, while resistance can be seen with the 83.70-83.80 range. The Reserve Bank of India’s comments on the rupee’s resilience and limited speculative position have kept the rupee moving slow and stable. According to RBI Governor Shaktikanta Das, the Indian rupee remains one of the least volatile currencies.

According to experts, India’s dependence on crude oil imports affects the value of the rupee. The surge in crude oil prices is mainly linked to concerns about supply constraints in the Middle East.