USD/INR Rises as Crude Oil Pressures Rupee; RBI Rate Cut in Focus

USD/INR Edges Higher as Crude Oil Prices Pressure Indian Rupee

Rupee Weakens as Oil Costs Rise, Despite Softer Dollar

The Indian Rupee (INR) declined against the US Dollar (USD) in Wednesday’s early European session, trading weaker as crude oil prices surged once again. As India is the third-largest oil importer, high oil prices significantly impact its trade balance and currency value.

Live Tracker: USD/INR Exchange Rate – Real-Time Chart

Softer USD and Foreign Inflows May Support INR

Despite current weakness, a pullback in the US Dollar—driven by soft US economic data—may cushion INR’s fall. According to BofA Securities, Indian assets remain attractive to global investors, and India is poised to be among Asia's top three destinations for foreign capital once trade tensions ease.

Key Events Ahead – RBI Decision and US Services PMI

Markets are looking forward to two major events:

• Reserve Bank of India (RBI) is set to announce its interest rate decision on Friday, where a third 25 bps cut is widely expected due to persistent inflation softness and global uncertainty.
• In the US, the ISM Services PMI for May is due later on Wednesday, offering clues about the health of the American services sector and further influencing USD sentiment.

📌 Read More: RBI Monetary Policy Preview – June 2025

Suggested Internal Links:

• Crude Oil Prices and INR Correlation
• RBI Rate Tracker – Forecast and Analysis
• Forex Today – Key Global Movers