Indian Rupee Opens Flat as Stronger US Dollar Offsets Lower Oil Prices

The Indian Rupee (INR) opened flat against the US Dollar (USD) on Thursday, despite lower oil prices. The pair has been trading close to its 10-day low of 95.40 due to a stronger USD. This morning's opening came after a holiday the previous day.

Lower crude prices typically boost currencies from economies that rely heavily on oil imports. However, the recent recovery in the US Dollar on Wednesday offset this positive effect. The US PCE inflation data for July showed an acceleration at a faster-than-expected pace, which kept fears of Federal Reserve interest rate hikes intact.

The next major market trigger is expected to be the Jackson Hole Symposium, where Fed Chairman Kevin Warsh will deliver a keynote speech on Friday, August 28. Strategists at DBS view this event as 'the most important' this week, but stress that it's being seen as a credibility event rather than a rate-signalling one.