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Rupee strengthens as dollar softens despite higher crude

USD/INR drops to about 95.40, while oil near Rs.7,115 is supported by renewed Middle East tensions that boost energy prices.

Reported · Written up by our desk · Major Pairs

The Indian rupee opened higher versus the US dollar on Thursday, with USD/INR falling to around 95.40 as the greenback eased.

FXStreet links the near-term rupee support to a weaker dollar, noting the US Dollar Index was down 0.25% to about 100.80, even as US FOMC June minutes emphasized “inflation as the dominant risk” and suggested additional tightening could be needed.

The rupee’s outlook remains mixed because renewed Middle East hostilities are pushing crude higher. FXStreet said MCX Crude Oil for the July 20 expiry held gains near Rs.7,115, after rising more than 10% from its multi-month low of Rs.6,505.

The dollar faced pressure as geopolitical developments escalated, including the US ending an Iran MoU after attacks between the two countries and attacks tied to incidents in the Strait of Hormuz. FXStreet also reported that overseas investors continued to add to Indian equities over the last four sessions, raising their stake by Rs.3,954.35 crore, while USD/INR stayed above the 20-day EMA near 95.10.

Latest closeWTI crude $81.23 ▼1.7%|Dollar index 101.39 ▼0.1%

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