Forex
Home›Forex›Major Pairs›Indian rupee near 95.85 as oil prices keep USD/INR und…
Indian rupee near 95.85 as oil prices keep USD/INR under pressure
USD/INR sits close to a fresh three week high of 95.85 as RBI-backed dollar sales are reported for an eighth straight session and early FCNR (B) deposit window closure remains a headwind.
The Indian rupee traded with caution versus the US dollar on Tuesday, with USD/INR near a fresh three week high of 95.85, according to FXStreet citing Reuters market reporting.
Reuters reported that the Reserve Bank of India likely intervened in the foreign exchange market for an eighth consecutive session, with four traders pointing to elevated oil prices as the key driver of pressure on the currency. Traders also said state-run banks were spotted offering dollars, most likely on behalf of the RBI.
Markets have also focused on the early closure of the zero swap facility for FCNR (B) deposits by a month, along with higher oil prices, as continuing headwinds for the rupee. One interpretation highlighted by Business Standard is that the FCNR closure signals the RBI has already secured enough foreign currency inflows and may have more room to support the rupee without encouraging additional dollar mobilisation.
FXStreet also linked the FX stress to energy price momentum, noting that the MCX Crude Oil contract expiring Aug. 19 was up 1.1% to around Rs. 8,150, its highest level in two weeks, after concerns rose that the US may not renew an Iran-related agreement. Ahead of the Fed, traders were set to watch the release of FOMC minutes for July on Wednesday for more cues on the US inflation and rate outlook.
Latest closeWTI crude $82.40 ▲1.4%