Geopolitical uncertainty over Iran’s response to a US proposal drives demand for the safe-haven USD, pressuring the INR.
The USD/INR pair rebounded on Thursday, erasing gains from the previous session as the Indian Rupee failed to sustain momentum. Geopolitical tensions, particularly uncertainty over Iran’s response to a US proposal, fueled demand for the US Dollar as a safe-haven asset.
The INR had strengthened on Wednesday but opened weaker on Thursday, reflecting broader risk aversion. Analysts noted that global market sentiment remains fragile amid ongoing geopolitical risks, limiting the Rupee’s upside.
No immediate market reaction data was provided, but the pair’s movement underscores the impact of external factors on emerging market currencies.