India’s rupee remains steady but faces pressure from elevated crude prices amid stalled US-Iran talks and import dependency.
The Indian Rupee opened flat against the US Dollar on Thursday, trading near 95.72 after modest gains in the previous session. Higher oil prices continue to cloud the currency’s outlook, with MCX Crude Oil dipping 1.2% in early trade but holding close to a 10-day high of 9,290.
India’s reliance on oil imports leaves the INR vulnerable to crude price swings. The US-Iran deadlock has kept energy markets volatile, despite President Trump’s claims of progress in negotiations. A potential deal could ease supply concerns, but no firm timeline has been set.
Earlier, India’s cabinet approved scrapping capital gains tax on foreign investment in government bonds, a move aimed at attracting overseas investors. The decision may provide some support to the rupee amid broader external pressures.