The post USD/INR flat below two-month peak after Fed pause, Iran–Israel conflict and oil prices weigh on Rupee appeared on BitcoinEthereumNews.com.

USD/INR trades flat near 86.58, slightly below its recent high, as earlier gains fade following the Federal Reserve’s widely expected rate hold. Iran-Israel conflict escalation and rising Crude Oil prices dampen emerging market currencies, adding pressure on the Rupee. The technical picture remains bullish for USD/INR, with a clear breakout targeting 87.00 if momentum holds above key short-term support. The Federal Reserve kept rates unchanged at 4.50% and signaled a cautious outlook, with traders eyeing Chair Powell’s comments for clues on possible rate cuts later this year. The Indian Rupee (INR) remains on the back foot against the United States Dollar (USD) on Wednesday, marking its second consecutive day of weakness despite a relatively subdued Greenback. Higher Crude Oil prices and deepening tensions between Iran and Israel continue to weigh on sentiment, keeping emerging market currencies like the Rupee under pressure. USD/INR briefly climbed to a two-month high of 86.75 earlier but is now trading flat near 86.58 during the American session, slightly below the previous day’s high after giving back some of its earlier gains as investors remain cautious. Meanwhile, the Federal Reserve (Fed) left the federal funds rate unchanged at 4.50% for a fourth consecutive meeting in June, as widely expected, maintaining a cautious stance while assessing the broader economic impact of President Donald Trump’s policies on tariffs, immigration, and taxation. The conflict between Iran and Israel has now entered its sixth day, showing no signs of de-escalation as both sides trade heavy strikes. Israeli forces have continued hitting military and suspected nuclear sites deep inside Iran, while Tehran has fired waves of missiles and drones in retaliation. The fighting has rattled daily life in the Iranian capital, where reports of casualties are rising, shops and markets have shut down, and fuel shortages are causing long lines at…

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Filed under: News - @ June 18, 2025 10:22 pm