The Indian Rupee gains modestly as the Reserve Bank of India likely steps in to curb excessive volatility in currency markets.
The Indian Rupee (INR) rose marginally against the US Dollar (USD) in early trading Tuesday, with the USD/INR pair dipping to near 95.70. Traders attribute the move to potential Reserve Bank of India (RBI) intervention in spot and Non-Deliverable Forwards (NDFs) markets to counter one-sided pressure on the currency.
The USD/INR pair has remained range-bound between 95.50 and 96.00 in recent sessions, with RBI actions limiting upside. However, sustained gains may be challenged by elevated global energy prices, driven by disruptions in the Strait of Hormuz, a key oil transit route.
Crude oil prices edged higher, with the MCX September contract trading 0.25% up at Rs. 8,160, nearing a four-week high. Oil-dependent economies like India often see currency weakness amid rising energy costs.