The Indian Rupee strengthens to near 96.10 against the USD as lower oil prices and reduced safe-haven demand weigh on the Greenback.
The Indian Rupee (INR) extended its recovery against the US Dollar (USD) early Monday, trading near 96.10. The pause in US-Iran military tensions has sharply reduced oil prices, easing import costs for oil-dependent economies like India.
MCX Crude Oil futures fell 4.75% to around Rs. 8,200 in early trade, while the US Dollar Index (DXY) slipped 0.25% to 101.25. The de-escalation follows Washington’s confirmation that its target list for strikes on Iran has been exhausted, prompting a temporary halt in hostilities.
Lower oil prices improve the outlook for India’s current account balance, boosting demand for the INR. The USD’s safe-haven appeal has also diminished amid reduced geopolitical risks.