US Pullout From Iran Deal Sends Rupee To Fresh 15-Month Low Vs US Dollar

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The rupiah (INR) closed at a new 15-month low of 67.26 against the US dollar on Wednesday after US President Donald Trump pulled the United States out of an international nuclear deal with Iran. On Tuesday, the rupee closed 5 paise higher to 67.08 against the US currency. The move from the United States sparked fears about the world’s oil supply, which raised world oil prices. India imports most of its crude oil requirement. After rising more than 6 percent last year against the US dollar, the rupee is on a downward trend this year. The rupee has fallen more than 5 percent against the US dollar so far against the US dollar. The weakness of the rupee against the US dollar is attributed to rising oil prices, which puts pressure on the balance of payments and the increase in yields on US bonds.