Indian Rupee Weakens Against US Dollar Amid Global Energy Fears

The Indian Rupee (INR) opened lower against the US Dollar (USD) on Thursday due to overnight gains in the latter. The USD/INR pair edged up to near 95.35 after a corrective move the previous day, as fears of a prolonged global energy supply disruption strengthened the US Dollar.

The US Dollar Index (DXY), which gauges the Greenback's value against six major currencies, traded firmly near Wednesday's high at 100.00. However, investors doubt the sustainability of the US Dollar's recovery due to easing fears of a near-term Federal Reserve interest rate hike.

TD Securities notes that 'markets remain relatively unchanged in the wake of the July report, with the pricing for a hike in the September meeting still sitting just under 50%.'