USD/INR jumps higher as Oil price recovery batters Indian Rupee
- The Indian Rupee declines against the US Dollar amid renewed uncertainty over the US-Iran permanent ceasefire.
- A sharp recovery in the Oil price has dragged the Indian Rupee.
- Iran refuses to resume negotiations with the US due to its excessive demands.
The Indian Rupee (INR) trades lower against the US Dollar (USD) at the start of the week. The USD/INR jumps to near 93.00 as renewed tensions between the United States (US) and Iran have lifted the oil prices and offered support to the US Dollar (USD).
Hormuz closure boosts oil prices
WTI Oil prices trade over 3.5% higher to near $88.00 in the Asian trade on Monday. The Oil price strengthens as Iran closed the Strait of Hormuz, a vital passage to almost 20% of global energy supply, again, as retaliation for the continued US blockade of Iranian sea ports and Washington’s attack on one of Iran’s commercial ships.
On Friday, Iran announced a temporary reopening of the Hormuz after US President Donald Trump announced a ceasefire between Israel and Lebanon.
Currencies from economies, such as India, which rely heavily on oil imports to meet their energy needs, tend to underperform in a high oil price environment.
Meanwhile, US President Trump has reiterated threats to obliterate every power plant and bridge in Iran, through a post on Truth Social, if the nation doesn’t take a deal soon.
US Dollar gains on renewed US-Iran tensions
Heightened uncertainty surrounding the occurrence of another round of talks between the US and Iran has improved the safe-haven demand of the US Dollar. As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally higher to near 98.35.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.11% | 0.20% | 0.24% | 0.04% | 0.35% | 0.29% | 0.16% | |
| EUR | -0.11% | 0.09% | 0.09% | -0.08% | 0.23% | 0.19% | 0.04% | |
| GBP | -0.20% | -0.09% | 0.00% | -0.16% | 0.14% | 0.10% | -0.06% | |
| JPY | -0.24% | -0.09% | 0.00% | -0.15% | 0.14% | 0.05% | -0.06% | |
| CAD | -0.04% | 0.08% | 0.16% | 0.15% | 0.29% | 0.22% | 0.10% | |
| AUD | -0.35% | -0.23% | -0.14% | -0.14% | -0.29% | -0.05% | -0.17% | |
| NZD | -0.29% | -0.19% | -0.10% | -0.05% | -0.22% | 0.05% | -0.14% | |
| CHF | -0.16% | -0.04% | 0.06% | 0.06% | -0.10% | 0.17% | 0.14% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Tehran has refused to return to the table to resume negotiations over the permanent ceasefire with the US due to its “excessive demands, unrealistic expectations, constant shifts in stance, repeated contradictions, and the ongoing naval blockade”, according to the Iranian Republic News Agency (IRNA).
FIIs continue raising stake in Indian stock market
Foreign Institutional Investors (FIIs) have remained net buyers in the last three trading days in the Indian stock market, and have raised their stake worth Rs. 1,731.71 crore. The sentiment of foreign investors toward the Indian equity market has improved since the announcement of the two-week ceasefire between the US and Iran, which will expire on April 22.
Overseas investors were not gung-ho on Indian equities since the announcement; however, the pace of selling reduced initially, and eventually they started turning out to be net buyers.
On the data front, investors await the US Retail Sales data for March, which will be released on Tuesday. The US Retail Sales data, a key measure of consumer spending, is estimated to have risen at a strong pace of 1.4% on a monthly basis, against a 0.6% growth seen in February.
Technical Analysis: USD/INR recovers above 20-day EMA
USD/INR recovers its Friday's losses and rises further to near 93.25 on Monday, resulting in an improvement in the near-term outlook, as it reclaims the 20-period exponential moving average (EMA), which is at 93.05.
The Relative Strength Index (RSI) continues to oscillate in the 40.00-60.00 zone, hinting at waning upside momentum rather than outright oversold conditions.
On the upside, the pair could recover further towards 94.00 if it manages a sustained move above the 20-day EMA. Looking down, the January 28 high at around 92.28 is the key support level; a close below 92.28 would expose the spot to the March 5 low at 91.40.
(The technical analysis of this story was written with the help of an AI tool.)
(This story was corrected at 11:30 GMT to say in the third paragraph of the third sub-heading that the US Retail Sales is estimated to have risen at a strong pace of 1.4%, and not 1.3%)
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
