Indian Rupee Rebounds Against USD Amid Pause in Oil Rally
The Indian Rupee (INR) has rebounded against the US Dollar (USD), benefiting from a pause in the rally of oil prices and US Treasury Yields. The USD/INR pair corrected to near 95.75, down from an over seven-week high of 96.10 posted the previous day.
The correction in oil prices has provided some relief for currencies like the INR, which are heavily dependent on oil prices to meet their energy needs. As of writing, the MCX Crude Oil contract expiring on September 21 trades at around Rs. 9,688.
A report by Deutsche Bank notes that an improvement in the outlook for oil flows out of the Middle East has resulted in a pullback move in oil prices. This includes news that Saudi Arabia is increasing tanker loadings in the Gulf and ramping up sales of crude from just outside the Strait of Hormuz.