Indian rupee to rally after US midterm fallout sinks oil on Iran war-exit hopes

Business Recorder reported that the Indian rupee could open stronger on Thursday, with traders indicating a range of 94.35-94.40 per dollar. It had finished Wednesday at 94.64. The move follows a sharp drop in crude prices after the Republican Party lost control of Congress in the US midterm elections.

Brent fell about 8.5% to $94.20 in Asian trading and was down almost 20% for the week. Analysts cited by the report said the election result could increase pressure on President Donald Trump over Iran policy, encouraging expectations of a negotiated end to the conflict. Lower oil prices would reduce India’s dollar needs for imports and could support its growth and inflation outlook, although a trader said the rupee’s recovery still depends on whether crude’s decline lasts.