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Rupee slips as oil prices stay elevated, pressuring USD/INR

USD/INR is near 95.72 as MCX crude for September 21 rises 0.6%, with energy import exposure weighing on the rupee.

Reported · Written up by our desk · Major Pairs

The Indian rupee weakened against the US dollar on Friday, with USD/INR edging up to about 95.72 as higher oil prices offset a softer US dollar, according to FXStreet.

At the time of writing, the MCX Crude Oil contract expiring September 21 was up 0.6% to around Rs. 8,350, staying closer to Thursday’s over three-week high near Rs. 8,404.

FXStreet noted that countries such as India that rely heavily on oil imports often underperform in a high-oil-price environment. It also pointed to the US Dollar Index, which was down 0.2% to around 99.63 and trading near a three-month low of 98.56.

FXStreet cited ongoing concerns about energy supply risks, saying both the US and Iran appear to be least interested in resuming talks over the reopening of the Strait of Hormuz, a chokepoint for roughly 20% of global energy supply, while TD Securities warned that energy market tightness is persisting due to stalled diplomacy and geopolitical frictions.

Latest closeWTI crude $82.40 ▲1.4%|Dollar index 99.64 ▼0.3%

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