Rupee falls to 94.54 per dollar as oil spikes
The rupee dropped to 94.54 to the dollar on Tuesday, mainly because global oil prices shot up and importers needed more dollars.
After opening at 94.37 to the dollar, the rupee hit a low of 94.58 to the dollar before the Reserve Bank of India likely stepped in to calm things down, as high oil costs and trade worries made markets uneasy.
Anil Bhansali sees rupee 94.25-94.75
Brent crude spiked by over 4% to $112.70 per barrel, making dollars even more in demand and squeezing the rupee further.
Treasury expert Anil Bhansali thinks this pressure will stick around unless the RBI steps in again, expecting the currency to hover between 94.25 to the dollar and 94.75 to the dollar.
A public sector bank trader echoed these concerns about trade uncertainty, adding that sentiment is negative because of trade-deal uncertainty and high oil prices.