Rupee Edges Up Amid Oil Price Fears as USDINR Nears Key Support Zone

The Indian rupee has appreciated by 4 paise to 94.39 against the US dollar in early trade on Monday, supported by strong FCNR-related dollar inflows and robust liquidity.

However, elevated Brent crude oil prices, nearing $97 per barrel due to US-Iran tensions, pose a major challenge for the rupee.

Rising oil prices are expected to increase India's import bill and put pressure on the rupee, but the rupee continues to draw strength from the liquidity wave.

CR Forex Advisors MD Amit Pabari said that 94.00-94.20 remains the key support zone for the rupee, but if global headwinds intensify, USDINR could move back towards 95.00, 95.50 and eventually 96.00.