RBI Intervention Lifts Rupee Amid Oil Price Surge
The Indian Rupee (USD/INR) strengthened against the US Dollar on Friday as the Reserve Bank of India (RBI) intervened to stabilize the currency. The RBI was seen selling dollars around the 96.80 level, which helped the Rupee rise.
The move came despite higher oil prices and renewed US-Iran tensions, which typically weigh on the Rupee. Crude prices have surged in recent weeks due to military tensions between the two countries, with Yemen's Houthi group shutting the Bab el-Mandeb Strait, a key shipping route through the Red Sea.
The upswing in oil prices has also led markets to reassess the outlook for US monetary policy. The probability of a Federal Reserve rate increase at the upcoming policy meeting has climbed to 35.8%, according to data from the CME FedWatch tool, pushing US Treasury yields higher and supporting the US Dollar.