INR vs USD, on April 20: Indian rupee trades at 92.8 against US dollar amid mixed global cues

According to a PTI report, foreign exchange (forex) traders said that the Indian rupee is expected to stay range-bound due to the volatile geopolitical situation in West Asia after Iran closed the Strait of Hormuz amid the US blockade.

As the conflict entered its eight week since the beginning on February 28, the focus of global investors still remained on hopes of a potential peace deal between the United States and Iran.

Investing.com data showed that the Indian rupee was trading at 92.9 against the US dollar as of 11:38 am on Monday, compared to 92.59 at the previous currency market close. The data also showed that the domestic currency weakened to 93.14 against the greenback during Friday’s trading session.

On Monday, the Indian rupee hit a high of 92.91 against the US dollar, after opening near the 92.7 range amid an elevated dollar rate in the market.

Dollar trades higher

The US dollar was trading at an elevated level due to the renewed demand for the benchmark currency amid the escalating situations in West Asia and the absence of a peace deal as the ceasefire deadline nears.

Data collected from the Bloomberg US dollar spot index (DYX) showed that the US greenback was trading 0.27% higher at 98.363 as of 2:10 am (EDT) on April 20, compared to the previous market close level.

Analysts also told the news agency that the crude oil bounced back during Monday’s market session as the geopolitical situation turned volatile after a fresh standoff between the US and Iran prevented ships from crossing the Strait of Hormuz.

Latest media reports suggest that the United States has claimed that Iran has violated the ceasefire agreement, while US President Donald Trump said that the US Navy attacked an Iranian-flagged cargo ship attempting to sail past the US blockade.

“We warn that the Armed Forces of the Islamic Republic of Iran will soon respond to and retaliate against this U.S. armed piracy,” said the Iranian military, according to a CNN report.

Trump also said that US officials will be heading for the second round of negotiations this week as the ceasefire deal expires on Wednesday, April 22.