Rupee depreciates 33 paise to open at 95.95 against US dollar

The Indian rupee weakened by 33 paise to open at 95.95 against the US dollar on Tuesday, 14 July, as renewed geopolitical tensions in the Middle East lifted crude oil prices and dented investor sentiment.

The currency came under pressure after a third consecutive night of US strikes on Iran heightened concerns that the fragile ceasefire could unravel, triggering a fresh rally in global oil prices.

Adding to the pressure, hawkish comments from a US Federal Reserve official pushed Treasury yields higher, a move traders said could further weigh on the rupee.

Brent crude rose to $85.64 a barrel in Asian trade, its highest level in more than a month, following the latest US military strikes on Iran and reports of attacks on tankers in the Strait of Hormuz.

After surging nearly 10% on Monday, Brent is now up more than 20% from its recent lows, reversing much of the relief the rupee had enjoyed from softer crude prices in recent weeks.

The rupee had earlier recovered to around the 94-per-dollar mark after the Reserve Bank of India (RBI) announced measures to attract dollar inflows, improving the currency's near-term outlook. However, although a significant portion of those inflows is still expected, the resurgence in crude oil prices has once again emerged as the primary source of pressure on the domestic currency, according to a Reuters report citing a currency trader at a bank.

Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.

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