Israel-Palestine War: Rupee Gains 4 Paise Against US Dollar As Asian Currencies Decline

Rupee opened stronger against US Dollar on Monday. The home currency gained 4 paise against US Dollar to trade at Rs 83.21 at around 9:10 am today. Earlier on Friday, rupee ended the day at Rs 83.25. Meanwhile, several Asian currencies witnessed a dip amid the ongoing Hamas and Israel's conflict. Crude oil gained more than 5% to trade at $87 a barrel as fierce clashes continue in many areas across southern Israel a day after Hamas launched surprise attack.

Many Asian currencies witnessed decline as Thai Baht dipped 0.51%, Indonesian Rupiah fell 0.33%, Phiipines Peso declined 0.41%, Malaysian Ringgit fell 0.17%, and Singapore Dollar too declined 0.17%. However, Japanese Yen soared 0.12%.

The latest events in Israel don't pose an immediate threat to oil supply, but there's a risk the conflict could spiral into a more devastating proxy war, embroiling the US and Iran. Any retaliation against Tehran amid reports it was involved in the attacks could endanger the passage of vessels through the Strait of Hormuz, a vital conduit that Iran has previously threatened to close, Bloomberg reported.

According to a Bloomberg report, "Key for markets is whether the conflict remains contained or spreads to involve other regions, particularly Saudi Arabia," ANZ Group Holdings Ltd. analysts Brian Martin and Daniel Hynes said in a note. "Initially at least, it seems markets will assume the situation will remain limited in scope, duration, and oil-price consequences. But higher volatility can be expected."