Rupee Tumbles as Oil Prices Spike Amid Fed Rate Uncertainty
The Indian rupee is poised to open lower on Friday due to concerns over oil prices and their impact on the Federal Reserve's interest rate decision. Brent crude has risen by about 4% in Asian trading, reaching near $84 a barrel.
This development has added to the uncertainty surrounding the Fed's next move, with traders expecting clues from the July US jobs report later in the day. The rupee is expected to open in the 95.35-95.40 range, having settled at 95.22 to the dollar on Thursday.
A currency trader noted that 'You will see a push higher (in dollar/rupee) today through the day. It's not just about oil. There is underlying demand (for dollars) at these levels.'
The Reserve Bank of India's policy actions and direct market intervention have played a key role in determining the currency's trajectory, with oil prices being a significant factor.