Rupee Closes 19 Paise Lower Against the Dollar

Ganpat Singh Chouhan

New Delhi, January 16 : Despite weakness in the dollar index, the Indian rupee ended 19 paise lower at ₹86.55 against the US dollar on Tuesday. This decline was attributed to a surge in US 10-year Treasury yields and rising crude oil prices, which exerted pressure on the Indian currency. On Wednesday, the rupee had closed at ₹86.36 per dollar.

Factors Impacting the Rupee

Market expert Sarveshwar Dayal Sinha pointed out that the rise in crude oil prices and increased demand for dollars from importers were the primary reasons for the rupee’s weakness. However, the depreciation was limited due to the weaker dollar index and a positive global equity market sentiment.

The dollar index weakened as the US Core Consumer Price Index (CPI) came in below expectations, alleviating some pressure on global currencies.

Outlook for the Rupee

Sinha noted that crude oil prices are expected to continue rising in the near term, which could lead to a further increase in dollar demand. This scenario may result in additional pressure on the rupee.

Additionally, the dollar index could strengthen after Donald Trump’s upcoming inauguration, which might have a broader impact on global currencies, including the Indian rupee.

Key Highlights:

The rupee closed at ₹86.55 per dollar, down from ₹86.36 in the previous session.
Crude oil price hikes and increased dollar demand from importers led to the decline.
Dollar index weakness and positive equity markets helped limit the rupee’s fall.
Further rupee depreciation is possible if crude oil prices and dollar demand continue to rise.

Author Profile

Ganpat Singh Chouhan: My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.