Indian Rupee – Market Update

Advisory Bazaar Info Services

* Rupee Under Pressure: The Indian rupee remains under pressure amid rising crude oil prices, with limited relief expected from RBI intervention.

* Trading Range: After closing at 95.1050 against the US dollar, the rupee is expected to trade in the 95.00–95.40 range.

* Recent Decline: The rupee has weakened by around 0.7% over the past two trading sessions, highlighting its increasing sensitivity to crude oil prices.

* RBI Intervention: RBI intervention has provided only limited support, reflecting the changing dynamics of the rupee market.

* Crude Oil: Brent crude remains above $100 per barrel, raising concerns for India due to its dependence on imported oil.

* Geopolitical Risk: Renewed military conflicts in the region have increased concerns over potential supply disruptions, keeping pressure on crude prices.

* US Treasury Yields: Higher US Treasury yields have added further pressure on the rupee by supporting the US dollar.

Outlook: Elevated crude prices, a stronger dollar and ongoing geopolitical uncertainty are likely to keep the rupee under pressure in the near term.