The Indian Rupee is expected to start a bit stronger on Monday, likely opening between ₹94.86 and ₹94.88 against the US dollar. This recovery took place after the rupee hit a record low of ₹95.33 last Thursday, because Indian markets were closed on Friday.
The main reason behind this boost is the drop in oil prices. Brent crude fell towards $105.50 after U.S. President Donald Trump announced plans to help clear ships stuck in the Strait of Hormuz, a vital route for global oil supply. The move is being called a humanitarian effort to help neutral nations. Lower oil prices usually help the rupee because India imports a massive amount of oil, and cheaper fuel means the country spends less on oil.
However, the rupee’s strength may have some limitations. Oil prices are around $108 per barrel due to ongoing negotiations between the US and Iran. If the two sides do not reach a concrete decision in the talks, oil prices will stay volatile.
Also Read- Indian Oil Raises Prices for Industry and Global Jets
Recently, the rupee has been under pressure, falling by almost 2% in less than two weeks. Such a trend creates a vicious cycle, as rising oil prices deter investors and prompt oil companies to borrow more dollars to meet their obligations.
