Rupee opens 12 paise lower at 96.40 against US dollar

The Indian rupee opened 12 paise weaker at 96.40 against the US dollar on Monday, 20 July, as a fresh surge in crude oil prices and escalating geopolitical tensions in the Middle East weighed on sentiment.

The domestic currency has declined 1.7% so far this month and is now inching closer to its record low of 96.96 per dollar, hit in May. The latest bout of weakness follows Brent crude climbing above $90 a barrel, driven by an intensification of the U.S.-Iran conflict.

The rupee had briefly recovered after crude prices retreated towards $70 per barrel and the Reserve Bank of India (RBI) introduced measures to boost dollar inflows. Improved foreign portfolio investment into Indian equities also provided temporary support to the currency.

However, those gains have quickly faded as oil prices resumed their upward trajectory. Brent crude futures advanced 2.7% on Monday, breaching the $90-a-barrel mark for the first time in nearly six weeks, renewing concerns over India's import bill and inflation outlook.

Geopolitical risks have intensified after the United States launched a ninth consecutive night of strikes on Iran, while Kuwait and Bahrain reported fresh Iranian attacks. The conflict has also disrupted shipping activity through the Strait of Hormuz, with both sides targeting maritime traffic, raising fears of further supply disruptions and keeping pressure on oil prices and the rupee.

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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