Mumbai: The Indian rupee on Wednesday weakened past the psychologically significant 86.50 per dollar mark and touched 86.56/$1-its weakest in over two months-amid dollar demand from oil companies and corporates for hedging. The currency closed at 86.48 per dollar, 24 paisa weaker, LSEG data showed.
RBI interventions were muted, though they helped contain excess losses, traders said. “Without intervention rupee would have weakened to 87,” a trader from a public sector bank said. Brent oil crude prices rose to $77.6 per barrel on Wednesday amid mounting concerns of supply disruption as the war between Iran and Israel continued.
“Foreign investors were sellers in equities and oil companies bought dollars,” said Anil Bhansali, head of treasury, Finrex Treasury Advisors. “We may see rupee moving between 86.25 and 87 (on Thursday) if we don’t see ceasefire in Middle East,” Bhanslai said.
Traders are now awaiting the Federal Reserve’s policy decision late on Wednesday.
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