Rising crude oil prices and Middle East tensions drive the Indian Rupee lower for a third consecutive session.
The Indian Rupee (INR) extended its decline against the US Dollar (USD) on Thursday, trading near 96.32 as elevated crude oil prices stoked concerns over higher foreign outflows. The MCX Crude Oil contract for July delivery rose 0.7% to Rs. 7,664, approaching its monthly high of Rs. 7,832.
India, a major oil importer, typically sees its currency weaken in high-oil-price environments. The latest pressure follows renewed military tensions in the Middle East, disrupting energy supplies. The US launched additional strikes against Iran to secure the Strait of Hormuz, a critical chokepoint for global oil flows.
US President Donald Trump warned of further attacks on Iranian infrastructure if negotiations fail, while Iran dismissed the threats, signaling prolonged instability. The geopolitical uncertainty continues to weigh on oil-dependent currencies like the INR.