Indian Rupee Gains Strength Amid Oil Price Surge

The Indian Rupee (INR) has shown some strength against the US Dollar (USD), trading near 95.67, after a possible intervention by the Reserve Bank of India (RBI).

This move comes as oil prices continue to rise due to tensions between the US and Iran, with crude oil prices on MCX reaching Rs. 8,150, their highest level in two weeks.

Economists at OCBC believe that higher oil prices and the early closure of RBI's FCNR(B) swap window will remain major headwinds for the INR.

The RBI is likely to intervene in the foreign exchange market again on Wednesday, after doing so eight consecutive times since August 11, according to four traders quoted by Reuters.

The Federal Open Market Committee (FOMC) minutes for the July policy meeting are also expected on Wednesday, which could provide fresh cues on US inflation and economic outlook.