FX.co ★ Rupee Extends Losses Amid Oil Surge

The Indian rupee hovered around 95.4 per dollar, remaining under pressure as rising oil prices and weakness across other Asian currencies weighed on sentiment. The currency has extended its losses for a second session after breaching the 95-per-dollar level last Wednesday, as uncertainty over a possible end to the US-Iran conflict has pushed oil prices higher. Brent crude has climbed about 7% this week and is nearing $90 a barrel, prompting importers to ramp up hedging and boosting demand for dollars, which has largely offset the positive impact of RBI interventions. The central bank has been selling dollars through state-run banks in both trading sessions this week, and traders noted that the rupee would likely have depreciated further without this support. Investors are now awaiting US inflation data due later on Wednesday for signals on whether the Federal Reserve will raise interest rates next month, with markets currently divided over the likelihood of another hike.