Volatile crude oil prices pressurize Indian rupee , says RBI

The Indian rupee (INR), like other EMEs, exhibited a depreciating bias in July owing to rising crude oil prices, driven by West Asia tensions, RBI noted in its August bulletin. A brief de-escalation of US-Iran tensions late in July led to a momentary appreciation of the INR. In August so far (till 20th), the INR depreciated due to rebound in global crude oil prices. In real effective terms, the INR appreciated in July driven by higher domestic inflation vis-vis major trading partners outweighing the depreciation of INR in nominal effective terms, the central bank said.