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Indian rupee slides as oil jumps and foreign investors sell stocks

USD/INR rises to about 96.46 in early trading, with surging crude linked to renewed US-Iran tensions and FIIs pulling out.

Reported · Written up by our desk · Major Pairs

The Indian rupee weakened against the US dollar at the start of the week, with the USD/INR pair jumping to around 96.46, according to FXStreet. The move reflects a fresh surge in oil prices alongside continued foreign fund outflows from India’s stock market.

FXStreet said the MCX Crude Oil contract expiring July 20 was about 2.6% higher at roughly Rs. 8,150, the highest level seen in over a month. The outlet linked the rise to renewed conflict in the Middle East after a ceasefire collapsed, including reports from Iran about attacks on oil tankers transiting the Strait of Hormuz.

The report cited Iran’s statements that passage would not be safe for petrochemical products or even oil and gas transit while US actions continue in the region. It also referenced US Central Command confirmation that it concluded a ninth straight night of strikes against Iran, described as retaliation for the killing of at least three American service members.

FXStreet added that Foreign Institutional Investors have turned net sellers in recent sessions, with FIIs offloading a stake worth Rs. 9,119.76 crore last week. While the dollar index was slightly lower near 100.70, the rupee still came under pressure from the oil and outflow dynamics.

Latest closeWTI crude $79.00 ▼0.8%|Dollar index 100.71 ▲0.2%

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