USD/INR rises to 95.72 as elevated crude prices and higher US Treasury yields pressure the Indian currency.
The Indian Rupee (INR) declined against the US Dollar (USD) in early trading Friday, with USD/INR climbing to near 95.72. The move follows a sharp recovery in US Treasury yields, which hit 5.25% for 30-year bonds, reducing demand for riskier currencies like the INR.
Oil prices remain elevated, with the MCX Crude Oil contract trading at Rs. 8,285, close to its three-week high of Rs. 8,404. India’s heavy reliance on oil imports makes the INR particularly vulnerable to rising crude costs. The US-Iran standoff has further tightened global oil supply concerns, keeping prices high.
Higher US bond yields and persistent oil price pressures continue to dampen sentiment for emerging market currencies, including the INR.