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Indian rupee slips for third day as crude oil rises

USD/INR hovered near 96.32 to 96.35 after elevated crude prices revived concerns about foreign outflows.

Reported · Written up by our desk · Major Pairs

The Indian rupee extended its decline against the US dollar for a third straight session on Thursday, with USD/INR rising to around 96.32 in early trade, according to FXStreet.

FXStreet linked the move to higher crude oil prices, saying the renewed supply disruption risk in the Middle East has pushed oil higher and can weigh on currencies in oil-importing economies like India.

The article cited gains in the MCX Crude Oil contract expiring July 20, up about 0.7% to near Rs. 7,664, moving closer to its monthly high of Rs. 7,832.

FXStreet also noted that foreign institutional investors were net sellers on Wednesday, trimming holdings worth Rs. 735.83 crore, and pointed to softer expectations for Fed rate hikes, with CME FedWatch showing a 10.2% chance of a hike later this month, down from 31% a week earlier.

Latest closeWTI crude $80.18 ▲1.1%

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