Rupee Falls Against USD as Oil Prices Rise and Dollar Gains

The Indian Rupee (INR) has fallen against the US Dollar (USD) at the start of the week, with the USD/INR pair rebounding to near 95.30 as oil prices extend their recovery move and the US Dollar regains ground after a weak Friday.

The MCX Crude Oil futures expiring on August 19 are trading over 1% higher at Rs. 7,500, which has boosted oil prices and weighed on the Indian Rupee.

Currencies from economies that rely heavily on oil imports to meet their energy needs tend to underperform in a high-oil-price environment.

The US Dollar Index (DXY) is trading 0.1% higher at near 99.70, but the US Dollar's recovery is expected to remain under scrutiny due to scaled-back hawkish Federal Reserve bets and lower interest rate hike expectations.