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Rupee weakens as oil prices rise and USD/INR edges higher

USD/INR rose 0.15% to around 95.95 as oil futures gained in the opening session, pressuring a rupee reliant on imports.

Reported · Written up by our desk · Major Pairs

FXStreet said the Indian rupee opened the week weaker versus the US dollar, with the move linked to higher oil prices over the weekend.

As of writing, the USD/INR pair was up 0.15% to around 95.95. In the opening session, the MCX Crude Oil contract expiring October 19 was up 2.22% to about Rs. 9,045.

The outlet said currencies from oil-importing economies like India tend to underperform when oil prices rise.

FXStreet also noted the Reserve Bank of India continues to support the rupee through intervention in both spot and Non-Deliverable Forwards markets, while the higher oil prices were attributed to renewed concerns involving Iran after US President Donald Trump pushed back hopes of diplomacy.

Latest closeWTI crude $92.44 ▼2.3%

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