Indian Rupee Falls To 10-day Low Against U.S. Dollar
(RTTNews) - The Indian rupee weakened against the U.S. dollar in the early European session on Thursday, amid surging crude oil prices as the U.S. and Iran continued to trade attacks, dashing hopes for the reopening of the Strait of Hormuz and renewing inflation concerns.
West Texas Intermediate crude for October delivery was up $2.98 or 3.20 percent at $96.01 per barrel.
Asian stock markets traded lower as surging crude oil prices weighed on investor sentiment and raised concerns over global inflation risks and the outlook for interest rates amid escalating US-Iran tensions and growing concerns over disruptions to Middle East energy supplies.
Iran has signaled readiness for a more intense conflict, while U.S. President Donald Trump ruled out a quick end to the war, saying it was unlikely to conclude before the November midterm elections. This has raised concerns over disruptions to energy flows through the Strait of Hormuz.
Traders also remained cautious ahead of the release of key US inflation data that could influence the US Fed's interest-rate outlook.
In the European trading, the Indian rupee fell to a 10-day low of 95.357 against the U.S. dollar from an early high of 95.111.
If the rupee extends its downtrend, it is likely to find support around the 96.00 region.
Looking ahead, the European Central Bank (ECB) will announce its monetary policy meeting at 8:15 am ET. The ECB is seen raising rates for the second time this year, with a 25-basis points hike fully priced in.
In the New York session, U.S. PPI for August, existing home sales for August, wholesale inventories for July and U.S. EIA crude oil data are slated for release.
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