The Indian Rupee (INR) surrenders early gains and turns marginally lower against the US Dollar (USD) on Thursday.
The USD/INR pair rises to near 95.30 despite oil prices remaining lower due to progress in talks between the United States (US) and Iran, the Indian central bank likely selling US Dollars in pre-market open, and a slight correction in the US Dollar In the opening session, the MCX Crude Oil contract expiring on July 20 trades 1% down to near 6,450, the lowest level seen in months
Currencies of economies, such as India that rely heavily on oil imports to meet their energy needs tend to outperform in a low oil price environment. A Reuters report has shown that the Indian central bank was likely selling US Dollars in pre-market open to shore up the Indian Rupee. Qatar says US-Iran talks remain positive Qatar’s Foreign Ministry spokesperson said that “positive progress” was made on issues related to the Memorandum of Understanding (MoU) between the US and Iran, following a separate meeting of Qatari and Pakistani mediators in Doha, CNN reported on Wednesday.
The meeting was expected to be centered on the future of the Strait of Hormuz, unfreezing Iran’s funds, and Tehran’s nuclear ambitions. The spokesperson also said that both sides confirmed that they would continue talks, which are expected after funeral processions for Iran’s former Supreme Leader, planned for July 4 through July 9. US Dollar drops ahead of US NFP data The US Dollar trades lower ahead of the US Nonfarm Payrolls (NFP) data for June, which will be published at 12:30 GMT.