Indian Rupee declines against USD amid supply disruption fears after Iran targets commercial ships in the Strait of Hormuz.
The Indian Rupee (INR) extended losses against the US Dollar (USD) on Tuesday, trading near 95.36 as oil prices climbed. Iran’s missile strikes on commercial tankers in the Strait of Hormuz, a critical route for 20% of global oil supply, sparked concerns over energy disruptions. Two ships were damaged, though no casualties were reported.
India, a major oil importer, typically sees its currency weaken when crude prices rise. The MCX Crude Oil contract for July delivery gained 0.66%, trading near 6,600. Market focus now shifts to Wednesday’s FOMC minutes, which may offer clues on the Federal Reserve’s rate outlook after its June meeting left rates unchanged at 3.50%-3.75%.
The Fed’s dot plot indicated nine of 19 policymakers expect a rate hike by year-end, though markets currently price in a lower probability of further tightening.