INR gains against USD amid lower oil prices and renewed foreign investor inflows into Indian equities after weeks of outflows.
The Indian Rupee (INR) rose against the US Dollar (USD) on Tuesday, with the USD/INR pair trading near 94.58. The gain follows a decline in oil prices after the Strait of Hormuz reopened, easing supply concerns, and renewed interest from Foreign Institutional Investors (FIIs) in Indian stocks.
Crude oil prices hovered near an eight-week low, with the MCX contract trading around 7,640. Lower oil prices benefit India, a major importer, by reducing import costs. Meanwhile, FIIs turned net buyers for the first time in June, injecting Rs. 46,430.42 crore after two weeks of heavy selling.
Investors await further details on the US-Iran peace deal, which could determine whether the Strait of Hormuz remains toll-free, potentially keeping oil prices subdued.