Rising crude oil prices and foreign fund outflows pressure the Indian Rupee, pushing USD/INR to a one-month high.
The Indian Rupee (INR) opened weaker against the US Dollar (USD), with the USD/INR pair climbing to near 96.46. The decline follows a 2.6% surge in crude oil prices, driven by escalating US-Iran tensions disrupting global energy supplies.
Oil prices reached a one-month high, with the MCX Crude Oil contract trading at Rs. 8,150. India’s heavy reliance on oil imports makes the INR particularly vulnerable to price spikes. Foreign fund outflows from Indian equities further weighed on the currency.
Iran’s attacks on oil tankers in the Strait of Hormuz, a critical transit route for global energy, have intensified supply concerns. The US has responded with continued military strikes, exacerbating geopolitical risks.