Indian Rupee Bounces as Rally of Oil Prices Falters

The Indian rupee gained today as falling prices for crude oil eased fears about potential increase of the nation’s trade balance deficit. The currency was heading for a first weekly gain in a month.
The rally of crude oil prices faltered on speculations that the conflict in Iraq will not impact supply to a great degree. In fact, Iraqi officials were even promising to increase exports. While prices for crude rose today, they were still heading for a first weekly decline since the crisis in Iraq has started. Previously, the Indian rupee was falling on concerns about negative impact of high energy prices on India’s trade balance.
USD/INR fell from 60.1700 to 60.0900 as of 14:28 GMT today.

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