The Indian Rupee rises as foreign inflows and central bank interventions offset geopolitical risks tied to oil supply disruptions.
The Indian Rupee (INR) advanced against the US Dollar (USD) for a second straight session, supported by strong capital inflows and Reserve Bank of India (RBI) measures. A temporary dip in crude oil prices eased pressure on the currency, though risks remain from potential US sanctions on Iran and supply constraints in the Strait of Hormuz.
Earlier this year, India faced record equity outflows as elevated oil costs strained its trade balance. The RBI’s weekend report of accumulating nearly $73 billion in reserves aims to stabilize the Rupee amid ongoing geopolitical uncertainty and volatile energy markets.
Traders remain cautious as crude prices threaten to rebound following US Treasury Secretary Scott Bessent’s announcement of stricter sanctions on Iran. Reduced Iranian oil shipments and a US naval blockade further tighten global supply, posing risks for India, the world’s third-largest crude importer.