Rupee Falls to 87.75 Against US Dollar as Importer Demand and Rising Oil Prices Pressure Market

The Indian rupee weakened by 17 paise to settle at 87.75 against the US dollar on Monday, driven by strong dollar demand from importers and a surge in global crude oil prices. Currency traders noted that cautious investor sentiment and persistent foreign fund outflows added further pressure on the domestic currency.

The trading session saw the rupee open lower and remain under selling pressure throughout the day as importers rushed to cover their payments amid a firm greenback in global markets. Brent crude prices stayed elevated, raising concerns over India’s import bill and widening the trade deficit.

Market participants also kept a close watch on geopolitical developments and upcoming US economic data, which could influence the Federal Reserve’s interest rate stance. Analysts believe that if oil prices remain high and foreign fund outflows persist, the rupee may face further downside in the near term.

For now, traders suggest that a stable outlook will depend on easing crude oil prices, stronger foreign inflows, and global risk sentiment turning more favourable towards emerging market currencies like the rupee.