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Rupee slips as dollar holds near recent highs

USD/INR climbed toward 95.35, supported by safe-haven dollar demand tied to Middle East tensions and concerns about Strait of Hormuz supply risks.

Reported · Written up by our desk · Major Pairs

The Indian rupee opened lower against the US dollar on Thursday as the greenback extended overnight gains, with USD/INR moving toward 95.35 after a corrective pullback the prior session, FXStreet reported.

FXStreet said the US Dollar Index, a gauge versus six major currencies, was trading firmly near its Wednesday high around 100.06, with Middle East tensions boosting safe-haven demand. The outlet also noted that expectations for a near-term Federal Reserve hike have eased somewhat, as markets anticipate slower US CPI growth in July, though the dollar still remains strong versus peers.

TD Securities highlighted that pricing for a rate hike at the September meeting is still just under 50.0%. It also pointed to the lack of progress in US-Iran negotiations on reopening the Strait of Hormuz, a key global energy chokepoint, as a factor that has helped oil prices recover.

FXStreet added that MCX Crude Oil for the August 19 contract was nearly flat around Rs. 7,920 in early trade, tracking global oil losses after OPEC revised its current year demand growth forecast down to 580,000 barrels per day from 780,000 bpd. The outlet said India’s retail inflation rose to 4.45% year over year in July, near estimates, and that USD/INR was holding below the 20-period EMA near 95.50, keeping a mild near-term bearish bias.

Latest closeWTI crude $82.68 ▼0.6%|Dollar index 99.99 ▲0.2%

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