- Indian Rupee tanks in early trade, tracking the oil price rally.
- Rupee may slide further if oil continues to rally on fears of a prolonged Saudi production outage.
The Indian Rupee has gapped lower by more than 60 paise in early trade, possibly tracking the oil rally.
The USD/INR pair jumped to 71.67 at the opening bell, having closed 71.01 on Friday.
Brent oil jumped close to 20% in early Asia on fears that Saudi Aramco’s production outage may last more than six weeks. The plant came under Drone attack on Saturday.
A rise in oil prices almost always drags the Rupee lower, as India is an oil-importing nation.
The INR may remain under pressure over the next few days if Saudi officials confirm markets’ worst fears, sending oil to levels near $75, as predicted by Goldman Sachs.
As of writing, the USD/INR pair is trading at 71.5275, representing 0.72% gain on the day.