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Indian rupee falls as dollar firms and oil spikes on US-Iran tensions
USD/INR rose to about 95.95, while MCX crude for July 20 delivery jumped 4.6% to around Rs. 7.127, pressuring an oil-import reliant currency.
The Indian rupee opened significantly weaker against the US dollar on Monday, with USD/INR rising to more than a six week high near 95.95, FXStreet reported.
The move was linked to a stronger US dollar and higher oil prices after renewed Middle East hostilities, including US strikes on multiple Iranian targets, lifted demand for safe havens.
FXStreet said the US Dollar Index, which tracks the greenback versus six major currencies, was up about 0.15% to around 101.15, while the MCX Crude Oil contract expiring July 20 gained 4.6% to about Rs. 7.127.
Looking ahead, FXStreet pointed to upcoming CPI releases in both India and the US, with India’s retail inflation expected at 4.3% year on year and the US core CPI seen at 2.9% year on year, alongside Federal Reserve Chair Kevin Warsh’s testimony.
The outlet also noted foreign investors were net buyers in India on Friday, purchasing Rs. 2,603.72 crore, the highest one day buying since June 19.
Latest closeWTI crude $71.51 ▼0.8%|Dollar index 100.97 ▲0.0%