Indian Rupee Weakened by Elevated Oil Prices and US-Iran Tensions

Indian Rupee Declines for Fourth Consecutive Session as Oil Prices Remain Elevated

The Indian Rupee continued its decline against the US Dollar for the fourth consecutive session on May 4, as the ongoing U.S.-Iran conflict keeps oil prices elevated and strains capital flows into the energy-importing nation.

The domestic currency opened lower by 3 paise at 94.95 per dollar on Monday, compared to Thursday's close of 94.92. The rupee's decline was expected by market analysts, with Finrex predicting a flat opening due to the lack of significant developments in the Iran-US conflict.

Despite the Indian Rupee's decline, Asian currencies showed a mixed performance against the US dollar. The table below highlights the performance of various currencies in the region:

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The Philippines Peso emerged as the top gainer, appreciating by 0.233%. In contrast, the Thai Baht faced the greatest pressure, declining by 0.385% and becoming the weakest among the listed currencies for the session.

The US dollar was a shade softer as investors waited for more developments in the Middle East and, crucially, whether the Strait of Hormuz could be opened. The ongoing uncertainty in the region is expected to continue affecting the rupee's value in the coming sessions.