Rupee Falls as Oil Prices Rise Amid Strait of Hormuz Uncertainty

The Indian rupee opened at 95.40 against the US dollar before slipping further to 95.42, down 6 paise from its previous close on August 11.

This decline is attributed to the sharp rise in Brent crude prices toward $90 per barrel due to uncertainty over the Strait of Hormuz and the lack of a quick U.S.-Iran agreement.

Brent crude was trading higher by 1% at $89.80 per barrel, with Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, stating that INR/USD at 95.50 becomes the immediate level to watch, followed by 95.80-96.00 if oil remains elevated.

The dollar index was trading at 99.87, up 0.05%, while foreign institutional investors purchased equities worth ₹258.55 crore on a net basis on August 11.