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Indian rupee set for positive start as oil falls and USD/INR eases

USD/INR slipped 0.35% to about 95.40 on Tuesday, helped by weaker oil prices and a sharp drop in US Treasury yields.

Reported · Written up by our desk · Major Pairs

FXStreet reports the Indian rupee is expected to open higher against the US dollar on Thursday after Wednesday’s Id-e-Milad holiday. The forecast is tied to falling oil prices, which also weighed on US Treasury yields earlier in the week, FXStreet said.

On Tuesday, the USD/INR pair declined 0.35% to near 95.40, alongside softer oil. FXStreet pointed to hopes that the Strait of Hormuz, a key chokepoint for about 20% of global energy supply, will reopen soon, including reports that the two countries discussed a mine-clearing mission in the strait.

The outlook also reflects continued focus on risks around Hormuz, including recent attacks on vessels and US warnings that it would sanction any entity doing business with Iran. Oman said it will continue discussions with regional partners to support peace, stability, and freedom of navigation, according to FXStreet.

FXStreet added that MCX Crude Oil for the September 21 contract was trading 2.2% lower at the time of writing, and down more than 8.5% from its monthly high last week. Looking ahead, strategists flagged the Jackson Hole Symposium, starting early Thursday, with attention on Federal Reserve Chairman Kevin Warsh’s keynote on Friday as a key driver for global markets.

Latest closeWTI crude $82.40 ▲1.4%

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