Rupee Trades Flat as Strait of Hormuz Uncertainty Weighs on Investors

The Indian rupee closed flat at 95.22 against the US dollar on Friday due to heightened risk aversion caused by uncertainty over a deal between Iran and Oman regarding the Strait of Hormuz.

Forex traders cited an overnight jump in crude oil prices as another factor contributing to investor unease, which resulted in the rupee trading in a range of 95.19-95.28 at the interbank foreign exchange before settling at 95.20 (provisional), 2 paise higher than its previous close.

Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, expects the rupee to trade with a slight negative bias on uncertainty over the deal between Iran and Oman, but notes that markets may remain volatile if any decision is made over the weekend.