Rupee Opens 30 Paise Lower At 95.57 Against U.S. Dollar Amid Oil Price Spike

The rupee declined by 30 paise at the opening on Thursday, slipping to 95.57 against the U.S. dollar from its previous close of 95.27, as rising crude oil prices and fresh geopolitical developments in the Middle East increased pressure on the domestic currency.

The decline came after oil prices moved higher following renewed military exchanges between Iran and the United States. Higher crude prices are closely watched in India, which relies heavily on imports to meet its energy requirements. An increase in oil costs typically raises the country’s import bill and can weigh on the rupee.

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Dollar Demand Remains Firm

According to market updates, the U.S. dollar continued to find support against several Asian currencies even as some European currencies strengthened against the greenback. Currency market participants remained focused on developments in the Middle East, along with inflation trends in major economies.

Brokerage firm Finrex said the USD/INR pair is expected to remain within a broad range, though the near-term bias remains slightly in favour of the dollar. The firm noted that exporters may use higher dollar levels to hedge receivables, while importers could utilise any decline in the greenback to manage near-term payment obligations. It indicated that the upside in the USD/INR pair may remain limited around the 95.80 mark.

Mixed Trend Across Asian Currencies

Asian currencies traded with mixed performance on Thursday. The Indonesian rupiah emerged as the strongest performer, appreciating 0.64% against the U.S. dollar. The Thai baht and Philippine peso gained ground moderately with rises of 0.09% and 0.06% respectively.

On the contrary, the South Korean won saw its worst performance with a fall of 0.35% against the dollar. Other Asian currencies also came under selling pressure as traders tried to gauge the effect of rising energy costs and geopolitical risks on them.

Key Global Trends

The dollar index weakened slightly to 99.903 amid speculations about U.S. military strikes in different parts of Iran. The development added to investor caution across financial markets.

Meanwhile, attention remained on inflation trends in the U.S. after consumer prices in May rose at the fastest annual pace in three years. The data has kept market participants focused on the future path of monetary policy by the U.S. Federal Reserve.

The euro traded at $1.1553, while the British pound stood at $1.33905 ahead of the European Central Bank’s policy decision. Currency markets are expected to remain sensitive to geopolitical developments, crude oil price movements and central bank signals, all of which could influence the rupee’s trajectory in the near term.