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Rupee slides as oil spikes and US-Iran tensions lift USD/INR
USD/INR rises to about 95.70, while India’s June retail CPI prints 4.4% YoY versus a 4.3% estimate and RBI rate-hike expectations.
The Indian rupee weakened against the US dollar on Monday, with USD/INR jumping to a level around 95.70, a move tied to higher oil prices amid renewed US and Iran tensions, according to FXStreet.
The report links the currency pressure to India’s heavy reliance on oil imports and notes that Middle East developments have pushed risk sentiment toward safe-haven demand for the dollar.
It also points to inflation data pressure at home. India’s retail Consumer Price Index came in at 4.38% year over year in June, above the 4.3% estimate and higher than May’s 3.93%, which could add to expectations of Reserve Bank of India interest rate hikes.
FXStreet further says investors are watching upcoming US inflation and Federal Reserve Chair Kevin Warsh’s testimony, while Foreign Institutional Investors stayed net buyers in India’s stock market on Friday with purchases totaling Rs. 2,603.72 crore.