Renewed US-Iran Tensions Weigh on Indian Rupee as Oil Prices Soar
The Indian Rupee opened lower against the US Dollar on Monday, with the USD/INR pair ticking up to near 95.43 due to higher oil prices caused by renewed tensions between the United States and Iran.
Oil prices surged after a US Central Command strike on Iranian rocket launchers over the weekend, following weeks of relative calm in the region. In response, Iran's Islamic Revolutionary Guard Corps launched ballistic missile strikes on two US bases in Jordan.
The Indian Rupee is heavily dependent on imported oil, and higher oil prices can weigh on its value. The Reserve Bank of India actively intervenes in forex markets to maintain a stable exchange rate.