INR gains ground against USD amid an 8.5% decline in oil prices and optimism over Strait of Hormuz reopening.
The Indian Rupee (INR) is poised for a stronger opening against the US Dollar (USD) on Thursday, following a 0.35% decline in the USD/INR pair to near 95.40 on Tuesday. The drop was driven by weaker oil prices, which also pressured US Treasury yields lower.
Oil prices have fallen over 8.5% from last week’s high of Rs. 8,076, with the MCX Crude Oil contract trading 2.2% lower at Rs. 7,660. Analysts cite easing tensions in the Strait of Hormuz, a critical chokepoint for 20% of global oil supply, as a key factor behind the decline.
Iran and Oman have discussed a temporary shipping corridor in the strait, aiming to improve navigation safety. The talks, described as constructive, could lead to practical measures to restore safe passage soon, contradicting earlier claims about mine removal in the region.