Indian Rupee holds onto two-week losses against US Dollar
The Indian Rupee (INR) opens on a flat note against the US Dollar (USD), but is close to its two-week low at around 95.75.
The Indian Rupee maintained its dip against the US Dollar, hovering near a two-week low of 95.75. The USD/INR pair faced pressure due to persistently high oil prices and unresolved tensions in the Middle East, particularly discussions surrounding the Strait of Hormuz. The MCX Crude Oil contract, expiring on August 19, saw a 0.6% increase, trading close to its three-week high.
Analysts from BNY Mellon noted that the hope for a swift reopening of the Hormuz Strait diminished, as US President Donald Trump declared no plans to revive the expired U.S.–Iran truce. This stalemate in negotiations kept oil prices elevated, posing inflation risks for markets. The RBI announced an early closure of its concessional FX swap facility, driven by higher-than-expected inflows of USD52.3 billion.
Oil prices, a key driver for India's import-dependent INR, remained influenced by ongoing Middle East tensions. Technical analysis indicated that USD/INR held a bullish bias, trading above the 20-period EMA near 95.58 and near the 38.2% Fibonacci retracement at 95.63. Should the pair surpass the 61.8% retracement at 96.12, it could signal further gains towards 96.46.
Conversely, a drop below the 38.2% retracement at 95.63 could expose the Rupee to deeper downside risks.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
