Rupee Drops Further at 93.71 Amid Dollar Strength

Rupee depreciated against the US dollar in early trade on Tuesday, failing to 93.71 down 18 paise from its Monday closing. This has weakened the rupee strength and increased the value of dollars that marked up to 94 per dollar mark.

Experts have said that if oil prices remain high for the rest of the month, particularly above $100 per barrel, the currency could move into the 94-95 per dollar ranger over the next one to two weeks.

Since the onset of the Iran conflict, has led to the depreciation of rupee by 3% against the US dollar and has fallen 8.7% so far in the current financial year.

Mr. Anuj Choudhary, Research Analyst, Mirae Asset Share Khan expects the rupee to face the negative bias, amid the global tension and sentiments may keep it under pressure. ” He mentioned that the time to time intervention by the RBI may support the rupee at lower levels”

In the market like this the risks are always high and unlimited. The world can handle a price shock, but risk increases when there is an energy shortage.

If the oil prices remain high, then price of the rupee will definitely decrease. It may pause a bit at 94/$1, but eventually move to 94.50/$” Anindya Banerjee, head of commodity and currency at Kotak Securities