The Indian Rupee rises marginally after central bank intervention, though elevated crude prices and geopolitical tensions limit upside.
The Indian Rupee (INR) opened higher against the US Dollar (USD) on Friday, with the USD/INR pair dipping to near 96.30. The Reserve Bank of India (RBI) likely intervened in spot and non-deliverable forward markets to curb the currency’s decline, though the scale remained measured despite persistent pressure.
The rupee had underperformed earlier in the week, and while intervention provided temporary support, concerns over rising oil prices and supply disruptions weighed. Crude oil futures on the MCX surged 1.16% to Rs. 7,700, nearing a monthly high, as economies reliant on oil imports face headwinds from elevated energy costs.
Geopolitical risks added to the pressure, with Iran threatening to close the Red Sea oil route if the US strikes its infrastructure. Such a move could tighten global oil supply further, exacerbating inflation fears and weakening oil-importing currencies like the INR.