USD/INR Price News: Bounces in early trade from 76.30 on higher oil prices

• USD/INR is marching towards 76.40 as DXY strengthens on jumbo rate hike expectations.
• Shanghai’s reopening and supply concerns in Libya have pushed the oil prices higher.
• The political crisis in Libya has seized up the oil exports.

The USD/INR pair has been bounced modestly in its early trade on Monday from 76.26. The major is scaling higher after printing a low of 75.24 on April 5. Surging oil prices and DXY have brought a slump in the demand for the Indian rupee.

Oil prices are advancing firmly as China has prepared to eradicate lockdown restrictions in Shanghai and supply concerns renew. After an almost three-week lockdown due to the Covid-19 resurgence, Shanghai is re-allowing economic activities in its region. This has cheered the oil bulls as the reopening of the world’s largest oil importer will support the aggregate demand. On the supply front, Libya could not deliver oil from its biggest oil field and shut another field due to political protests as per Reuters. An expected rebound in the aggregate demand along with renewed supply concerns has infused fresh blood in the oil counter.

Meanwhile, the US dollar index (DXY) is hovering around 101.00 backed by higher expectations of a jumbo rate hike by the Federal Reserve (Fed) in May. Federal Open Market Committee (FOMC) member James Bullard in his speech on Monday has bolstered the odds of aggressive guidance by the Fed. The FOMC member advocates a reversion of interest rates to 3.5% and that too by the end of the year. This has underpinned the greenback against the Indian rupee.