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Rupee extends gains versus dollar on oil price decline
USD/INR is near 95.65 as crude falls, helping ease India’s import-related foreign outflows amid ongoing Fed and RBI policy focus.
The Indian rupee extended its winning streak against the US dollar for a third straight session on Tuesday, with USD/INR trading near 95.65, according to FXStreet. The move came as lower oil prices supported the currency.
FXStreet linked the softer crude backdrop to India’s heavy energy import dependence, noting that the country meets 85% of its energy demand through imports. It said falling oil reduces foreign outflows tied to those purchases, which can improve the appeal of the rupee.
The report also pointed to expectations around US and Middle East developments affecting oil, after US President Donald Trump said Iran is talking to Washington about a deal and announced he halted strikes to open the door to diplomacy. FXStreet added that despite the decline in attacks, the Strait of Hormuz remains closed.
Looking ahead, FXStreet flagged the Federal Reserve’s policy decision Wednesday as a key market catalyst, with CME FedWatch showing a 62% chance rates are left unchanged at 3.50% to 3.75%. It also highlighted a Reuters poll for India’s GDP growth, plus the upcoming Reserve Bank of India monetary policy announcement as the next major trigger for USD/INR, which is holding near its recent corrective phase below the 20-day EMA around 95.9.
Latest closeWTI crude $81.92 ▼8.3%