Home›Forex›Major Pairs›Rupee gives back gains as oil rebounds and Fed decisio…

Rupee gives back gains as oil rebounds and Fed decision looms

USD/INR is near 95.85 after the rupee had won for three straight sessions, with oil up about 5% on the day in a near-term contract.

Reported · Written up by our desk · Major Pairs

The Indian rupee traded marginally lower against the US dollar on Wednesday after a three-day winning streak, with USD/INR rebounding toward 95.85, close to the pair's intraday high, according to FXStreet.

The move follows a sharp recovery in crude, FXStreet said, noting India imports most of its energy, so higher oil prices can increase foreign outflows that weigh on the currency. It also pointed to renewed Middle East tensions that have supported oil.

FXStreet linked the oil bounce to reported precision strikes in Iraq targeting Iran-backed groups and related developments around the Strait of Hormuz. It said the reported “struck and stopped” status of tankers and concerns about a prolonged closure keep global oil supply tight.

The key near-term catalyst is the US Federal Reserve policy decision, FXStreet added. Using CME FedWatch, it said traders assign a 69.5% chance the Fed holds rates unchanged in the 3.50% to 3.75% range, with the US Dollar Index (DXY) down 0.1% to about 101.25 ahead of the announcement.

Latest closeWTI crude $81.23 ▼1.7%|Dollar index 101.39 ▼0.1%

More like this

Sources