Surging crude oil prices and anticipation of India-US CPI data weigh on the Indian Rupee, pushing USD/INR near 95.45.
The Indian Rupee (INR) declined against the US Dollar (USD) on Wednesday, trading near 95.45 as rising oil prices added pressure. The MCX Crude Oil contract rose 1% to Rs. 8,040, exacerbating concerns for oil-import-dependent economies like India.
Oil prices remain elevated due to prolonged supply disruptions in the Strait of Hormuz, a critical chokepoint for nearly 20% of global energy supply. Shipping traffic through the strait dropped to just six vessels on August 10, down from a 10-day average of 11, according to data.
Market focus now shifts to India and US Consumer Price Index (CPI) data for July, which could influence the USD/INR pair further. Mediators report progress in US-Iran negotiations, though tensions persist.