USD/INR trades near 97.00 as rising oil costs and U.S. bond yields pressure the currency amid geopolitical tensions.
The Indian Rupee (INR) extended losses against the US Dollar (USD) on Wednesday, nearing its all-time low. The USD/INR pair held gains around 97.00, driven by elevated oil prices and rising U.S. Treasury yields.
Oil prices climbed due to fears of a prolonged closure of the Strait of Hormuz, a critical chokepoint for global crude shipments. Higher energy costs strain India’s import-dependent economy, exacerbating currency weakness. U.S. Treasury yields also rose, bolstering the USD and adding downward pressure on emerging market currencies.
The INR’s decline reflects broader concerns over inflation and external account imbalances, with no immediate relief in sight for the currency.