Rupee Edges Higher as Crude Prices Ease and Foreign Flows Watched

The Indian rupee opened higher against the US dollar on Monday, September 21, following easing crude oil prices and closely watching foreign portfolio flows for further direction.

The rupee started at 95.81 per US dollar, compared to Friday's close of 95.87.

Brent crude prices fell around 2% to $101.70 a barrel on Monday, after rising above the $100 mark due to concerns over energy supply disruptions linked to the Iran-US conflict and expectations of a diplomatic solution during United Nations meetings this week.

Elevated crude prices remain a concern for India as it imports most of its crude oil requirements, potentially increasing import bills and pressuring the current account and rupee value.

Goldman Sachs pointed out that while high oil prices may continue to pressure India's current account, improved capital-flow dynamics could keep the USD/INR pair within a 95-97 range.