INR vs USD on July 13: Indian rupee drops to 95.9 against US dollar; key things to know

Forex traders cited in a PTI report said that the crude oil prices rising above $79 per barrel (bbl) have weighed down on the Indian currency amid the ongoing West Asia conflict, where Iran has announced that they have closed the Strait of Hormuz.

Investing.com data showed that at 12:20 am (IST), the Indian rupee was trading 0.68% weaker at 95.975 against the US dollar on Monday’s market, compared to 95.32 at the previous currency market close.

On Monday’s market, the rupee noted a weak opening around 95.72 levels.

"The renewed fighting between the US and Iran revived fears of a major disruption to global Crude supplies," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, told the news agency.

Rupee performance

In the last six months, the Indian rupee has lost 6.3% of its value against the US dollar, and the currency was down nearly 3% in the past three months, according to Investing.com data.

The data also showed that the domestic currency has lost around 1% in the last one month, and 0.6% of its value in the last five trading sessions.

The Indian currency dropped to a record low of 96.965 against the US greenback during the West Asia crisis, while the year-high level for the currency was at 85.733, as per the exchange data.

US Dollar strength

The US dollar spot index (DXY) data showed that the greenback was trading 0.14% higher at 101.09 during the trading session on Monday, compared to 100.95 at the previous currency market close, according to Investing.com data.

The US dollar was witnessing heightened volatility and higher demand in the market due to the geopolitical sentiment and escalations in West Asia, with investors closely tracking the developments as any disruption can potentially spark a new leg of the conflict.

The rising value of the benchmark currency plays an important role in the prices of precious metals and other emerging market currencies as investors switch their bets to safe-haven assets like the dollar and yield-bearing assets like US Treasury bonds.