Indian Rupee Weakens as Oil Prices Rise Amid Middle East Tensions
INR losses momentum as oil prices rebound amid war uncertainty
Business Standard
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The Indian rupee (INR) opened at ₹92.63 per dollar and fell to a low of ₹92.71 due to rising oil prices and uncertainty over a U.S.-Iran ceasefire. Despite this, the World Bank has upgraded India's GDP growth forecast for FY27 to 6.6%, maintaining its position as the fastest-growing major economy.
- 01The Indian rupee opened at ₹92.63 per dollar and hit a low of ₹92.71.
- 02Oil prices are rebounding amid uncertainty over U.S.-Iran ceasefire terms.
- 03Asian markets are mostly lower despite positive cues from Wall Street.
- 04The World Bank upgraded India's GDP growth forecast for FY27 to 6.6%.
- 05India continues to be the fastest-growing major economy despite a slight growth moderation.
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The Indian rupee (INR) lost momentum in early trading on Thursday, opening at ₹92.63 per dollar and dipping to a low of ₹92.71. This decline is attributed to rising oil prices and uncertainty surrounding the U.S.-Iran ceasefire. Local equities also opened lower, influenced by a sharp rise in oil prices and geopolitical tensions in the Middle East, particularly following renewed Israeli strikes on Lebanon. Despite these challenges, the World Bank has upgraded India's GDP growth forecast for the fiscal year 2026-27 (FY27) to 6.6%, an increase from the previous estimate of 6.3%. While this represents a slight moderation from the 7.6% growth expected in FY26, India remains the fastest-growing major economy globally, as noted in the World Bank's latest South Asia Economic Update.
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The weakening of the Indian rupee may lead to increased import costs, particularly for oil, which could affect fuel prices and overall inflation in the country.
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