Indian rupee, Indian currency
Indian rupee seen weakening further as oil prices stay at record levels Image Credit: Pixabay

Dubai: Indian rupee weakened by 10 paise in early trade to Rs20.25 against the UAE dirham on Thursday, bogged down by record level oil prices - which analysts cite also as the reason why the currency will stay pressured in the days to come.

The strength of crude oil prices weighed on the Indian currency on Wednesday, but steadied at Rs20.15 against a dirham in the UAE, after oil dropped more than $1 (Dh3.67) earlier in the session before regaining back its losses.

The rupee declined by 12 paise to 74.70 against the US dollar in opening trade on Wednesday, as muted domestic equities and elevated crude oil prices weighed on investor sentiments.

On Tuesday, the rupee slumped by 33 paise to close at a two-week low of 74.58 against the US dollar. The Indian rupee is trading weaker so far this week versus the dollar tracking the strength of the greenback which got a lift on rate hike expectations.

Oil steadied on Thursday, clawing back losses earlier in the session, as strong demand and short-term supply disruptions continue to support prices close to their highest levels since late 2014.