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Rupee weakens near two-week low as oil prices rise
USD/INR was around 95.76 after crude oil rose 0.6% in early trading, keeping pressure on an oil-import dependent currency.
The Indian rupee was trading weaker versus the US dollar, holding close to a two-week low around 95.75, according to FXStreet. The move reflects continued strength in crude oil prices and renewed uncertainty around the Strait of Hormuz.
FXStreet said the USD/INR pair has been pressured as discussions between the United States and Iran about reopening the strait have not advanced. The report also pointed to shipping disruption and supply concerns, noting oil is a key input for countries like India that rely heavily on imports.
In early trading, the MCX Crude Oil contract expiring on August 19 was up 0.6% to near Rs. 8,130, close to a three-week high of Rs. 8,170 set on Tuesday.
FXStreet added that the RBI has intervened in spot and Non-Deliverable Forwards markets multiple times in recent months to support the rupee, and was expected to step into the foreign exchange market again amid persistently elevated oil prices and US-Iran uncertainty. The outlet also cited technical levels, with USD/INR at about 95.76 and near support around 95.63 and resistance around 95.87 to 96.12.
Latest closeWTI crude $82.40 ▲1.4%