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Indian rupee near two-week low versus US dollar as oil stays elevated

USD/INR hovered around 95.76, with higher crude prices and renewed Strait of Hormuz supply concerns weighing on oil-import exposed currencies like India.

Reported · Written up by our desk · Major Pairs

The Indian rupee held close to a two-week low against the US dollar as USD/INR opened flat but stayed near 95.75, according to FXStreet. The pair remained under pressure with crude oil bid supported, and the newsletter cited renewed concerns around the Strait of Hormuz as a key chokepoint for a large share of global energy supply.

FXStreet said higher oil prices can hurt currencies for import-heavy economies, noting that India is particularly exposed. It also pointed to disruptions in shipping activity and a lack of clarity over US-Iran dynamics, including a report that the US is not currently involved in scheduled discussions with Iran.

The article added that India’s central bank, the RBI, has intervened multiple times in spot and non-deliverable forwards markets to support the depreciating rupee. It said the RBI was expected to step in again as elevated oil prices persist amid uncertainty tied to US-Iran risk.

From a technical perspective, FXStreet described USD/INR holding a mild bullish bias above the 20-period exponential moving average near 95.58, while reclaiming the 38.2% Fibonacci retracement around 95.63. It also flagged resistance at 95.87 and 96.12, with support near 95.63 and the 20-period EMA, while the RSI around 54 indicated constructive but not overextended momentum.

Latest closeWTI crude $82.40 ▲1.4%

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