Indian Rupee starts weak negatively as oil prices extend gains
The Indian Rupee (INR) opens on a weak note against the US Dollar (USD) at the start of the week. The USD/INR pair jumps to near 96.46 as a fresh surge in oil prices and the consistent outflow of foreign funds from the Indian stock market are hurting the Indian currency. In the opening trade, the MCX Crude Oil contract expiring on July 20 is 2.6% higher at around Rs. 8,150, the highest level seen in over a month. 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. Oil prices surge on continued US-Iran aggression The continuous exchange of attacks between the United States (US) and Iran after the collapse of the ceasefire has pushed oil prices higher, disrupting the overall energy supply. Latest reports from Iran have shown that they are consistently attacking oil tankers attempting to transit the Strait of Hormuz, a vital passage to almost one-fifth of the global energy supply. Iran‘s Islamic Revolutionary Guard Corps (IRGC) said that two oil tankers were blown up after attempting to transit the southern route of the Strait of Hormuz. The Iranian military stated that the passage will not be