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Rupee firms as RBI support seen, USD/INR near 96.47
USD/INR is still close to its two-month high, and the outlook is tempered by higher oil prices tied to Red Sea disruptions.
The Indian rupee edged higher against the US dollar on Thursday as traders weighed the possibility that the Reserve Bank of India stepped in to support the currency in spot and non-deliverable forward markets, according to FXStreet.
The USD/INR pair moved down toward 96.47, remaining near a two-month high of 96.75 reached on Monday. Reuters reporting cited an RBI role in limiting INR losses, as oil prices kept rising and the currency drifted toward record lows.
FXStreet also linked the rupee’s weakness to a combination of higher oil imports costs and foreign fund outflows from Indian equities. It cited a Reuters report that the RBI has intervened several times in recent weeks.
The brief also noted that the energy backdrop remains a key risk, with MCX crude oil for an August 19 expiry up 1.75% to around Rs. 8,570. FXStreet referenced an FX view that oil around $95 can act as an FX shock, while higher energy supply risks, including Red Sea strikes affecting tanker routes, could keep the pressure on oil-import dependent currencies.
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