USD/INR breaks above 96.10 resistance amid geopolitical risks and rising crude costs, extending the rupee’s decline.
The Indian rupee weakened to near-record lows against the US dollar as escalating US-Iran tensions drove oil prices higher, increasing inflationary pressures. USD/INR breached the 96.10 resistance level, signaling further upside potential for the pair.
Recent US inflation data softened expectations for a July Fed rate hike, with markets now pricing in the next increase no earlier than October. However, persistent geopolitical risks limit downside for the dollar, supporting the USD/INR rally.
Technical analysis shows buyers targeting new highs, with pullbacks expected to find support at the trendline and former resistance levels. The rupee’s structural bearish trend remains intact, attracting dip-buyers in the pair.