Rupee Claws To 70 Level On Crude Oil Price Surge After 4-Month High Of 69.58

In Friday's trade, rupee has hit a fourth-month high of 69.58, but soon with crude oil climbing up, the domestic currency has lost in value and was last trading with losses of 0.65%, down 0.45 at 70.04 per US dollar.

The decline in the rupee's value is also on the back of dollar gaining strength against some other emerging currencies due to the US Fed's stance on interest rates. Further, losses in the rupee's value have been capped due to gains in the domestic equity markets due to favourable geo-political developments such as a ceasefire on the US-China trade war issue.

Also, there has been an increase in the demand for the US dollar from importers. Nonetheless, foreign fund outflows and crude oil price surge has weighed on the rupee currency. The rupee for the first time moved lower from the psychological mark of 70 in August 2016 and since then reached levels of as low as 74. But a slew of positive factors have now brought some relief to the currency such as sharp fall in international crude oil price and moderate inflation rate.

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