Forex
US Dollar Edges Higher Against Indian Rupee Amid Oil Price Uncertainty
The US dollar is trading slightly higher against the Indian rupee, with prices near 94.70 as of Tuesday, September 8. Rising oil prices are putting pressure on the rupee, offsetting the impact of a weaker dollar.
Rising crude oil prices have far outweighed the supportive effects of a weaker US dollar on the rupee, according to OCBC Bank. The bank noted that higher energy costs will significantly constrain room for currency appreciation in Asian countries, excluding Japan.
Société Générale forecasts that Brent crude could break above $102 per barrel and climb towards the $108, $110 range. If oil prices continue to rise, the rupee may come under further downward pressure.