Oil, dollar double whammy hits rupee

Mumbai: The rupee depreciated 28 paise to close at 96.03 (provisional) against the US dollar on Monday, on risk-off sentiments in global markets after the US rejected a deal proposal by Iran, diminishing hopes of reopening of the Strait of Hormuz.

Forex traders said global risk sentiments deteriorated as the stalemate between the US and Iran continued; falling risk assets and a surge in crude oil prices may continue to pressurise the rupee. At the interbank foreign exchange market, the rupee opened on a negative note at 95.89 against the American currency. During the day, the local unit slipped further to close at 96.03 (provisional), a 28 paise fall from its previous close.