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Rupee near record low against dollar amid rising oil rates

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Rupee near record low against dollar amid rising oil rates

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The rupee is not far from record lows against the US dollar amid rising crude oil rates and strength in the greenback overseas.

Rupee near record low against dollar amid rising oil rates
The rupee recovered some of its initial losses after opening at 77.55 against the US dollar on Wednesday amid rising crude oil prices and strength in the greenback overseas. 
The dollar index — which gauges the greenback against six peers — rose 0.1 percent to 103.47. 
"One reason behind the move in the rupee could be exporters' rush to lock rates of above the 80 mark against the US dollar in long-term forwards and the RBI’s offloading of yards of dollars in response to the negative sentiment," said Amit Pabari, Managing Director at CR Forex Advisors.
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He expects the rupee to move within a range of 76.80-77.80 in the short term and 76.50-78.50 over the medium term.
Crude oil prices hit seven-week highs on hopes of a recovery in demand from China as the country gradually eases some of its pandemic-related restrictions.
Brent futures were up 0.7 percent at $112.8 a barrel at the last count, and US West Texas Intermediate (WTI) futures were up 1.4 percent at $111.1 a barrel. India meets the lion's share of its demand for oil through imports. 
Crude oil is supported by a weekly report showing a decline in US crude oil stocks and supply risks relating to Russia, according to Ravindra Rao, VP-Head Commodity Research at Kotak Securities.
"However, the prospect of the US easing restrictions on Venezuela to boost global supply, forecasts of higher US crude production and Fed’s monetary tightening stance are weighing on the price," he said.
On Tuesday, the rupee had settled at 77.47 against the US currency.
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