Rupee Continues Downward Trend for Ninth Consecutive Trading Session Amid Decreasing Oil Prices

Indian Rupee Extends Losses Amid Geopolitical Uncertainty

The Indian rupee opened marginally weaker against the dollar on May 19, extending losses for a ninth consecutive session amid continued weakness across Asian currencies and lingering geopolitical uncertainty in the Middle East.

At 9:10 am, the rupee was trading at 96.38 against the dollar, down 0.04 percent from its previous close of 96.36. This move came even as crude oil prices eased after President Donald Trump said he had called off a planned military strike on Iran following requests from Persian Gulf allies for more time to negotiate.

Crude Oil Prices Eased Following Trump's Decision

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Brent crude slipped below $110 a barrel after rising 2.6 percent in the previous session, while West Texas Intermediate crude for July delivery traded below $103 a barrel. Trump said in a social media post that leaders of Saudi Arabia, Qatar, and the United Arab Emirates had requested the US to postpone the planned attack on Iran as negotiations were underway.

Oil Prices Remain Elevated Amid Global Uncertainty

Oil prices, however, continued to remain elevated as markets assessed the risk of prolonged disruptions in the Strait of Hormuz, a critical global energy shipping route. Market participants said uncertainty around negotiations and the possibility of continued restrictions in energy flows from the Persian Gulf are keeping pressure on emerging market currencies, including the rupee.

Asian Currencies Broadly Trade Lower

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Asian currencies broadly traded lower during the session. The South Korean won declined 0.74 percent, while the Indonesian rupiah fell 0.33 percent and the Taiwan dollar weakened 0.26 percent. The Thai baht, Singapore dollar, and Japanese yen also traded lower, while the Chinese offshore yuan slipped 0.06 percent.

Bloomberg Dollar Spot Index Trades Marginally Lower

The Bloomberg Dollar Spot Index traded marginally lower after declining 0.3 percent in the previous session.