Indian rupee vs US dollar: INR may go down up to 73 on escalating US-Iran standoff

Rupee vs Dollar: According to experts, if the US-Iran standoff goes up another level, then the rupee may fall up to Rs 73 per US dollar.

Rupee vs Dollar: Since, India is a major oil importer, rising crude oil prices will have a direct impact on the INR and it may go down up to Rs 73 per dollar levels, say experts. Photo: Reuters

Rupee vs Dollar: On account of US-Iran standoff and the US President Donald Trump issuing further threats of sanctions against Iran and the Iranian government vowing retaliation in the wake of the killing of its general in an American drone strike in Iraq, the Indian Rupee (INR) is expected to plunge to its all-time low. According to the experts, if the US-Iran standoff goes up another level, then the rupee may go down up to Rs 73 per US dollar (USD).

Speaking on the INR vs USD, Anindya Banerjee, Research Analyst — Derivative and Currency at Kotak Securities said, "The US-Iran standoff is the major reason for the rupee plunging against the US dollar. However, if the Iran-US standoff stays at the verbal levels and there is no military engagement, then the rupee may not go beyond Rs 72.5 per dollar levels — it's last year's lowest levels. But, the way US President Donald Trump has issued threats of sanctions against Iran and Iran's retaliation against the Drone strikes killing its General in Iraq, the rupee may go down by an additional 50 paise to 60 paise from its last year's lowest level."

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Amit Sajeja, Research Analyst at Motilal Oswal Commodities said, "Tension in the Middle East will have a direct impact on all oil-importing countries and if the Brent Crude oil price sustains above $70 per barrel then it will have a direct impact on the national currencies against the dollar in the international FOREX market. Since, India is a major oil importer, rising crude oil prices will have a direct impact on the INR and it may go down up to Rs 73 per dollar levels." He said that all depends upon how Iran handles this tension.

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