The Indian rupee was weighed down after crude prices hit their highest since November 2018 on Monday. Additionally, the tensions over Kashmir affected the sentiments of investors.
After opening lower at 71.35/dollar in the morning session, the local currency hit an intra-day low of 71.51 on Monday. The rupee had closed at 71.23 on Friday, the previous trading day.
International crude oil benchmark Brent climbed to $66.78 a barrel, its highest since November 2018 after supply cuts from the Organisation of Petroleum Exporting Countries (OPEC) and some of its allies like Russia. This supply cut was decided in December after a steep fall in oil prices, however, the sanctions imposed by the US government on Venezuela and Iran, both members of OPEC, have added to the woes.
The possibility of an end in trade disputes between the US and China also supported the crude prices in the global markets this morning before it weakened after China reported a drop in car sales.
The rupee has slumped 2.4 percent in 2019, dragging it down from being the best performing currency in Asia in the last quarter to the worse this year, according to a Bloomberg report.
Experts say that the progress in US-China trade talks did not positively affect India's currency, unlike its regional peers, due to the tensions in Jammu and Kashmir following the terrorist attack and political uncertainty. Rupee's losses could deepen if the country's issues with Pakistan worsen.