Indian Rupee strengthens against the US Dollar early Wednesday, defying a 2.6% jump in crude oil prices amid geopolitical tensions.
The Indian Rupee (INR) rose against the US Dollar (USD) in early trade Wednesday, with the USD/INR pair declining to near 95.00. The move comes despite a 2.62% surge in the MCX Crude Oil contract, which settled at 6,882, driven by escalating geopolitical risks following US strikes on Iranian military targets.
Oil prices climbed after the US launched retaliatory attacks on Iran for targeting commercial ships in the Strait of Hormuz, a critical chokepoint for global energy supply. Typically, oil-dependent economies like India see currency pressure during oil price spikes, but the INR held firm in early trade.
The US Dollar Index (DXY) also weakened ahead of the release of Federal Open Market Committee (FOMC) minutes later in the day, adding to the Greenback’s softness.