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Indian rupee edges lower as oil rises on US-Iran tensions

USD/INR moves toward 95.43, while MCX Crude Oil for September 21 gains 2.13% in the opening session, pressuring oil-import reliant India.

Reported · Written up by our desk · Major Pairs

The Indian rupee opened slightly weaker versus the US dollar as renewed US-Iran tensions pushed oil prices higher, FXStreet said. In early trade, the USD/INR pair ticked up to around 95.43, reflecting the currency pressure from costlier imported fuel.

FXStreet also pointed to a rise in oil futures, with the MCX Crude Oil contract expiring September 21 trading about 2.13% higher near Rs. 8,160. The outlet said the renewed conflict risk stems from renewed fears of a wider Middle East supply disruption.

The US and Iran exchanged attacks over the weekend, according to FXStreet, after the US Central Command struck Iranian rocket launchers linked to mines being prepared for the Strait of Hormuz. FXStreet added that Iran responded with ballistic missile strikes on two US bases in Jordan.

Looking ahead, FXStreet said the US Nonfarm Payrolls data for August, due Friday, is the main near-term driver for the dollar. The outlet noted that CME FedWatch odds of the Fed leaving rates unchanged at the September meeting fell to 39.4%, down from nearly 60% a week earlier, after comments attributed to Fed Chairman Kevin Warsh at Jackson Hole reiterated the commitment to a 2% inflation target.

Latest closeWTI crude $83.44 ▼0.1%

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