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Rupee slips near two-week low as oil concerns persist

USD/INR hovered around 95.75, with higher crude prices and shipping disruption around the Strait of Hormuz adding pressure on the rupee.

Reported · Written up by our desk · Major Pairs

The Indian rupee traded lower versus the US dollar and hovered near a two-week low around 95.75, with the USD/INR pair under pressure as crude oil prices stayed elevated. FXStreet noted that India’s heavy reliance on oil imports tends to weigh on currencies when oil prices rise.

FXStreet attributed part of the move to renewed uncertainty tied to discussions involving the reopening of the Strait of Hormuz, a major global energy chokepoint. The outlet also cited concerns that shipping activity remains disrupted and that fresh attacks near the strait have reinforced supply worries, keeping oil vulnerable to escalation risks.

Oil strength and geopolitical uncertainty are also feeding into expectations for additional currency-market support, with the RBI seen to have intervened in spot and non-deliverable forwards markets several times in recent months. Reuters, as cited by FXStreet, reported that the central bank was expected to step into the foreign exchange market again to help shield the rupee from persistent oil-driven pressure.

The timing of rupee pressure is also set against upcoming US policy signals, with investors looking ahead to the Federal Open Market Committee minutes from the July meeting, scheduled for release at 18:00 GMT. FXStreet said Commerzbank expects the minutes to be closely watched for any clues about how near FOMC members were to raising interest rates, especially amid the new chair Kevin Warsh’s approach to letting markets set the pace.

Latest closeWTI crude $82.40 ▲1.4%

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