Rising crude prices on US-Iran tensions drive the USD/INR pair to near 95.65, weighing on the import-dependent currency.
The Indian Rupee weakened against the US Dollar at Thursday’s open, with the USD/INR pair climbing to near 95.65. The move follows a sharp rebound in oil prices amid escalating concerns over the potential collapse of the US-Iran ceasefire agreement.
Oil’s surge adds pressure on India, the world’s third-largest oil importer, as higher crude costs widen the trade deficit and strain the rupee. The pair had traded lower earlier in the week but reversed gains as geopolitical risks resurfaced.
No immediate market reaction data was provided, but the rupee’s decline reflects broader risk aversion in emerging markets.