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Rupee strengthens as USD/INR slips amid lower oil prices

USD/INR is near 95.85, while oil-related moves and a softer dollar index coincide at the start of the Fed policy week.

Reported · Written up by our desk · Major Pairs

The Indian rupee is extending its recovery versus the US dollar as USD/INR falls to around 95.85 at the start of the Federal Reserve’s monetary policy week, FXStreet reports.

FXStreet links the move to lower oil prices, saying a US-Iran pause in military aggression has weighed on crude and reduced the dollar’s safe-haven appeal. With India relying heavily on oil imports, the currency tailwind tends to strengthen when oil drops sharply.

The MCX Crude Oil contract expiring August 19 is trading about 6.25% lower near Rs. 8,065, while the US Dollar Index is down about 0.25% to roughly 101.25.

FXStreet also notes that the Fed’s Wednesday decision is expected to leave interest rates unchanged in the 3.50% to 3.75% range, a key catalyst for global markets this week.

Latest closeWTI crude $90.47 ▼1.9%|Dollar index 101.47 ▲0.0%

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