Indian Rupee Rallies on Oil Price Drop, Growth Forecast Slows

The Indian Rupee (INR) extended its winning streak against the US Dollar (USD) for the third consecutive trading day. The USD/INR pair fell to near 95.65 as a further decline in oil prices strengthened the Indian currency.

Crude Oil, which accounts for 85% of India's energy demand, saw a significant drop in price, with the MCX Crude Oil contract expiring on August 19 trading 1.4% down at Rs. 7,848, its lowest level in a week.

The Indian economy is expected to grow at 6.6% Year-on-Year (YoY) this year, slower than the previous year's growth rate of 7.7%. The slowdown in economic growth will weigh on India's GDP and could impact the Rupee.