The Indian Rupee rises to 95.44 against the US Dollar amid lower USD demand, though higher oil prices pose downside risks.
The Indian Rupee (INR) strengthened against the US Dollar (USD) in early trade Thursday, with the USD/INR pair dropping to near 95.44 as the greenback softened. The move follows a broader decline in the US Dollar, though geopolitical tensions in the Middle East continue to support oil prices, pressuring oil-importing economies like India.
Crude oil prices remain elevated, with the MCX Crude Oil contract holding near Rs. 7,115, up over 10% from last week’s low of Rs. 6,505. The collapse of a US-Iran memorandum of understanding has intensified regional hostilities, further tightening global oil supply concerns.
Despite the INR’s rebound, analysts warn that sustained oil price increases could weigh on the currency, given India’s reliance on energy imports. The outlook for USD/INR remains bullish amid ongoing geopolitical risks.