The Indian rupee is trading slightly weaker as renewed hostilities in the Middle East lifted oil prices and sapped risk sentiment, while traders pointed to modest portfolio inflows that helped limit downward pressure, Reuters reports.

The rupee was at 95.16 as of 11:05am IST, down slightly from its close at 94.9675 in the previous session.

The US-Iran hostilities lifted oil prices by nearly 3pc, while bond yields ticked higher and Asia Pacific stocks fell. India’s benchmark equity index, the Nifty 50, declined by 0.5pc.

Elevated oil prices present a risk to net energy importers like India and a sustained rise can lead to both slower growth and higher inflation.

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