The Indian rupee’s recent rally, bolstered by a surge in optimism over an imminent peace deal with Iran and dollar-selling interventions by the central bank amidst record lows last week, may face resistance due to fresh U.S. strikes in southern Iran.
The Indian rupee has been on a winning streak after hitting its lowest this year at 96.96 against the dollar last week. The currency strengthened following these events and central bank interventions, reaching as high as 95.23-95.30 range.
However, recent developments have dented investor confidence with U.S. forces conducting strikes in southern Iran labelled as ‘defensive actions’. This has caused a spike in oil prices and put pressure on the currency which is now expected to open lower today against the dollar.