The Indian rupee closed flat against the US dollar on Thursday, amid rising oil prices. The local currency opened stronger against the US currency after the Federal Reserve hinted at a potential interest rate cut in September.
The Indian currency closed flat at Rs 83.72, after opening at Rs 83.68 against the greenback, according to Bloomberg. It closed at Rs 83.73 on Wednesday.
Brent crude oil prices were at $81.46 per barrel and the US Dollar Index was at 104.42.
Brent oil prices had risen to $81.25 per barrel, after the killing of Hamas leader in Iran raised the threat of a wider Middle East conflict, according to Anil Kumar Bhansali, head of Treasury and executive director at Finrex Treasury Advisors LLP.
Signs of strong oil demand in US, after stockpiles fell by 3.4 million barrels in the week-ending on July 26, also supported the rise in oil prices, he said.
Also Read: US Fed Keeps Interest Rates Unchanged For Eighth Time At 5.25-5.5%, Hints At September Cut
Fed Chair Jerome Powell said a rate cut "could be" on the table in three months' time. His comments came after the Fed decided to keep rates unchanged at its latest policy meeting, according to Bloomberg.
The dollar index was initially 0.10% down at $103.98, and Brent crude oil prices were previously trading 2.66% higher at $80.72 per barrel on Thursday, due to geopolitical tensions arising out of Israel's attack on Beirut.
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