Indian Rupee Closes Weaker Against Dollar Amid Rising Oil Prices

The Indian rupee closed weaker on Thursday on dollar demand by oil importers amid rising oil prices.

The local currency depreciated 7 paise to close at Rs 83.66 after it opened at Rs 83.58, according to Bloomberg. It had closed at Rs 83.59 on Tuesday.

Brent oil prices climbed buoyed by bigger than expected weekly decline in US crude stocks. The dollar was at 103.84 , while Brent crude was trading at $85.09 per barrel.

Adding to this, globally, risk aversion increased as the threat of more restrictions on China ramped up concerns over a renewed trade war, said Anil Kumar Bhansali, head of Treasury and executive director at Finrex Treasury Advisors LLP.

Bhansali advises exporters to sell dollars above Rs 83.60, while he suggests importers buy dollars at dips or trigger stop losses at Rs 83.60. He sees the dollar-rupee pair trading in a narrow range of Rs 83.55 and Rs 83.65 on Thursday.