Rupee snaps eight-day rally as oil climbs to highest since May
The Indian rupee ended its eight-session-long winning streak, closing down 0.4% at 94.8175 per dollar. Concerns over escalating oil prices amid the Middle East conflict contributed to global market volatility. Brent oil prices reached $112.40 per barrel, impacting India's economy due to high crude imports. The Reserve Bank of India faced pressure on whether to defend the currency amid these pressures.
The Indian rupee snapped an eight-session-long winning streak on Thursday as Brent oil prices climbed to their highest since May on deepening worries about conflict in the Middle East, which hammered global equities as well.The South Asian currency endured a volatile trading session, swinging from its strongest level in over six weeks to close down 0.4% at 94.8175 per dollar.Earlier in the day, chunky foreign inflows for Jio Platforms' IPO added to tailwinds from the Reserve Bank of India's defensive measures that had boosted the currency but its gains faded as oil prices climbed in the latter half.Traders pointed to broad-based dollar demand locally alongside broader signs of a risk-off move in global markets.MSCI's All-World index was set for its largest daily fall in two weeks, down 0.4%, as tech shares from Seoul and Tokyo to Amsterdam and Paris came under pressure.
