As crude continues to increase, the rupee opens slightly lower against the dollar at 86.56.

The local currency opened at 86.56 against the US dollar, and currently traded at 86.57 against the dollar, as compared to 86.57 at close in the previous trading session against the greenback. On January 17, the rupee opened slightly lower due to the ongoing increase in the price of Brent crude. Around 10 a.m., the Indian rupee opened at 86.56 versus the US dollar and was trading at 86.57. In the last trading session, it finished at 86.57. Concerns over a tighter supply after US sanctions on Russian oil and indications of possible interest rate cuts from a Federal Reserve member caused oil prices to spike on January 17. At $81.67 a barrel, the price of Brent crude oil was up 38 cents, or 0.47 percent. The steep increase in the price of Brent crude oil, the increasing dollar index, and the withdrawal of foreign investors caused the local currency to conclude the day 18 paise weaker on January 16. On January 17, 2025, the Indian rupee opened at 86.56 against the U.S. dollar and was trading slightly lower at 86.57 by 10 a.m., maintaining the previous session's closing rate. The decline was primarily attributed to the rising price of Brent crude oil, which increased by 0.47% to $81.67 per barrel. The upward pressure on crude prices came amid U.S. sanctions on Russian oil, fueling concerns over tighter global supply. This, coupled with speculation about potential interest rate cuts by the Federal Reserve, further influenced market dynamics. Brent crude’s rise marked the fourth consecutive weekly gain, driven by reduced energy supply from Russia and increased spot demand. These developments have had a ripple effect on emerging market currencies, including the rupee, as oil-importing nations face increased import bills. The rising crude oil prices also compounded the challenges posed by a strengthening dollar, leading to heightened pressure on the rupee. Despite these pressures, the Reserve Bank of India (RBI) likely intervened in the foreign exchange market to curb excessive volatility. The rupee’s decline was thus limited, even as dollar bids increased due to the maturity of positions in the non-deliverable forwards (NDF) market. The RBI’s actions helped stabilize the currency, preventing further depreciation amid unfavorable global conditions. Looking ahead, the rupee is expected to trade within the range of 86.20 to 86.80 in the near term, with its performance largely hinging on global oil price trends and domestic economic factors. Foreign investor activity and the dollar index will also play key roles in shaping the currency’s trajectory. Market participants remain cautious, monitoring global economic conditions and potential interventions by the RBI to assess the rupee’s stability in the coming weeks.