The Indian Rupee remains rangebound amid easing oil prices, though supply risks persist due to geopolitical tensions in key shipping lanes.
The Indian Rupee traded flat at 95.40 against the US Dollar on Friday, as investors await clarity on the reopening of the Strait of Hormuz, a critical chokepoint for global oil supplies. The USD/INR pair showed little movement despite broader market uncertainty tied to energy supply disruptions.
Oil prices corrected 0.85% to Rs. 7,755 in early trading, retreating from a weekly high of Rs. 8,075 on Tuesday. Analysts attribute the pullback to profit-taking, though supply constraints from the closure of the Strait of Hormuz and Bab al-Mandab—accounting for 27% of global energy flows—could reignite upward pressure.
TD Securities noted easing near-term momentum in oil but maintained a constructive outlook, citing tight crude and product markets. Higher oil prices risk stoking inflation and weighing on India’s economic growth and government spending.