Indian Rupee: Elevated Oil keeps INR lagging against US Dollar – OCBC
OCBC strategists Sim Moh Siong and Christopher Wong note Indian Rupee (INR) remains under pressure despite broader US Dollar (USD) weakness, as high Oil prices and importer Dollar demand weigh on the currency.
Indian Rupee (INR) continues to lag behind the US Dollar (USD), despite a general decline in the value of the USD. This issue is primarily driven by high oil prices and increased demand for USD by Indian importers, which put pressure on the currency. Despite the broader USD weakness, RBI-linked USD sales have helped contain losses and prevent the USD/INR pair from moving higher.
The early closure of the RBI's concessional FCNR(B) swap window at the end of August has further limited additional FX inflow support. With the resistance level at 95.90-96, INR may continue to struggle unless crude prices decrease significantly.
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