Rupee nears record low amid rising oil prices and geopolitical risks

The Indian rupee closed at 96.56 on Friday, near its all-time low of 96.96 hit in late May, pressured by rising oil prices and renewed geopolitical tensions in West Asia. Traders note the RBI has been defending the 96.55-96.60 zone, with FCNR(B) deposits and ECB swap inflows of about $20.7 billion helping manage the currency. The rupee has weakened 6.8% so far this calendar year, with the crude oil import bill surging 47% year-on-year to $14.6 billion in June.