Rupee Closes At Three-Month Low Amid Escalating Israel-Iran Tensions
Rupee fell amid escalating Middle East tensions between Iran and Israel along with rising crude oil prices.
The Indian rupee closed 26 paise weaker at 86.74 against the US dollar on Thursday, in comparison with its previous close of 86.47 on Wednesday. This is the lowest in three months. The currency's decline comes amid ongoing market uncertainty and geopolitical tensions.
The domestic currency opened 6 paise weaker at 86.53, against the US dollar.
"The Indian Rupee weakened against the Dollar on Thursday morning trade, weighed down by dollar bids from local corporate and elevated oil prices," said Sriram Iyer, senior research analyst at Reliance Securities.
Rupee fell amid escalating Middle East tensions between Iran and Israel along with rising crude oil prices, both pressuring the currency against the dollar, said Ritesh Bhanshali, director, Mecklai Financial Service Ltd.
The domestic currency will see support at 86.10-85.80 levels, while resistance will be at 86.60-86.90 levels, added Bhanshali.
Additionally, the US dollar index was higher at 99.09.
Brent crude—the global benchmark for crude oil—rose 0.12% to $76.79 after a volatile trading week as the market focused on whether President Donald Trump will plunge the US into the conflict between Israel and Iran, which has raised concerns around supply disruptions.
Prices have fluctuated in a range of around $8 this week, with volatility spiking, options getting more bullish, and key spreads significantly widening in backwardation, according to Bloomberg.
