Rupee opens at 95.28 after oil surge raises dollar demand
Business
The rupee opened at 95.28 against the dollar on Friday, a slight dip from yesterday.
This drop happened after oil prices shot up nearly 4% to $84 per barrel, thanks to new shipping rules proposed by Iran and Oman for the Strait of Hormuz, the strategic waterway.
Since India imports most of its crude, higher oil costs mean more demand for dollars, putting extra pressure on the rupee.
Reserve Bank of India sells dollars
To keep things steady, market watchers say the Reserve Bank of India jumped in by selling dollars, helping prevent a bigger fall.
Otherwise, the rupee could have opened even weaker.
Now everyone is waiting for the US jobs report out later today; if it shows strong hiring, it could push the dollar higher and make things tougher for currencies like ours.