Rupee Weakens Against the Dollar

The Indian rupee closed 12 paise lower at 85.92 against the US dollar on Monday, influenced by rising global crude oil prices and a stronger dollar. The Reserve Bank of India intervened to mitigate the currency's decline.

Market Dynamics

Forex traders pointed to persistent foreign fund outflows and the lack of progress in the India-US bilateral trade agreement as key factors behind the rupee's weakness. The dollar index's rise also contributed to the rupee's subdued performance throughout the day.

Impact of Global Events

Anil Kumar Bhansali of Finrex Treasury Advisors LLP noted, "The Indian rupee fell as the India-US trade deal remains uncertain, and US tariffs on the EU and Mexico added to the dollar's strength."

Commodity Prices and Equity Markets

Brent crude futures increased by 1.56% to $71.46 per barrel, further pressuring the rupee. Meanwhile, domestic equity markets saw declines, with the BSE Sensex dropping 247.01 points.

Looking Ahead

With the US CPI data awaited, the rupee is expected to trade between 85.75 and 86.25 on Tuesday. The RBI's presence in the market and foreign portfolio investors' activities will be crucial in determining the currency's direction.