Forex
Home›Forex›Major Pairs›Rupee slips as higher oil prices outweigh a softer US…
Rupee slips as higher oil prices outweigh a softer US dollar
USD/INR rebounded toward 94.90 from a two-month low of 94.29 as crude rose, and traders looked ahead to US CPI on Friday for rate expectations.
The Indian rupee retreated from its two-month high against the US dollar on Tuesday, with USD/INR recovering toward 94.90 after falling to 94.29 last week, FXStreet reported. The move reflected higher oil prices outweighing a softer dollar tone.
FXStreet said the US Dollar Index, which tracks the greenback versus six major currencies, was about 0.1% lower near 98.80 as markets focused on caution ahead of US CPI due Friday. The report also noted that MCX crude for the September 21 contract rose 0.6% to around Rs. 8,818, the highest since May 22.
OCBC warned that renewed oil strength and higher US Treasury yields create an unfavorable setup for much of Asia ex-Japan, given the region’s dependence on energy imports, potentially limiting FX gains even if the broader dollar stays contained. It said elevated energy costs could act as a terms-of-trade shock that caps currency appreciation.
FXStreet added that expectations for further oil gains are tied to continued US and Iran clashes, with Societe Generale pointing to Brent advancing toward its next levels after crossing a multi-month descending trend line. Commerzbank said the latest escalation increases supply risks around the Strait of Hormuz, and the week’s key event for FX was the US CPI data for August, expected to influence Federal Reserve interest rate expectations.
Latest closeWTI crude $90.70 ▲0.5%|Brent $95.32 ▲0.7%|Dollar index 99.58 ▼0.1%