Rupee crosses psychological barrier of ₹96 a dollar

The rupee crossed the psychological barrier of ₹96 a dollar reaching an intraday high of ₹96.14 against the greenback before closing at ₹95.8. 

The rupee has now depreciated about 6% from the first day of the calendar year, when it was at ₹89.8 a dollar. The major reason behind the depreciation of the rupee is the increasing brent crude prices which has already crossed $108 a barrel and a continuous foreign fund outflow from Indian equities. 

“Market has been keenly watching the Trump-Xi summit but yesterday’s talks have not given any positive factor on the US-Iran peace efforts though both have agreed on one aspect that Strait of Hormuz should be opened,” said Anil Bhansali, Head of Treasury at Finrex Treasury Advisors LLP. He however added that barring RBI’s dollar sales, there are no major reasons for the rupee to appreciate from here.