The Indian rupee remained under pressure, trading largely flat around 95.4 against the U.S. dollar, after briefly touching 95.5 in the previous session as rising crude oil prices and a stronger greenback weighed on the currency.
Key Highlights
- Rupee appreciated 7 paise to settle at 95.41 (provisional) against the dollar
- A recovery in domestic equities and dollar selling by state-run banks supported the currency
- Rising crude oil prices amid the West Asia crisis continue to be the biggest headwind for the rupee
- Volatility has picked up sharply following the collapse of the Iran ceasefire
Why It Matters
India imports over 80% of its crude oil needs, making the rupee highly sensitive to oil price swings. A sustained rise in crude could widen the current account deficit and add further pressure on the currency.
What to Watch
Traders are watching RBI intervention levels and the trajectory of Brent crude, along with the Fed’s rate path, for near-term rupee direction.
Disclaimer: This article is for informational purposes only and does not constitute investment or currency trading advice. Please consult a financial advisor.
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