USD/INR to remain elevated on high oil prices – Mizuho

The USD/INR opened at 72.555 in June. Toward the end of the month, the pair remained high, with trading closing at 74.26 on June 29. USD/INR is expected to remain high in July, according to analysts at Mizuho Bank.

The rise of crude oil prices is a negative factor for the Indian rupee 

“It is necessary to carefully observe the impact of the July employment statistics and the price indices of the US on US monetary policy outlook. However, the dot plot was modified at the FOMC meeting in June, making it difficult for expectations for an interest rate hike to diminish, as they did in May.” 

“If crude oil prices remain high, as currently, the USD/INR is expected to also remain high.”