Indian Rupee Trades Flat Amid Oil Price Volatility
The Indian Rupee (INR) opened almost flat against the US Dollar (USD) on Thursday, trading around 95.12 after rebounding from a fresh monthly low of 94.83 posted the previous day.
The RBI left its key Repo Rate unchanged at 5.25%, as expected, for the fourth time in a row, and lowered its inflation forecast for the current year to 5%, but warned that core price pressures could accelerate to 5.9% in the third quarter due to supply-side pressures from food and fuel.
Oman and Iran are close to finalizing a framework to manage navigation through the Strait of Hormuz, which is expected to boost oil prices. The MCX Crude Oil contract expiring on August 19 trades slightly higher near Rs. 7,125, but is close to its three-week low of Rs. 7,078 posted on Wednesday.