• USD/INR has climbed to near 76.20 amid a firmer rebound in oil prices.
• Easing lockdown restrictions in China has spurted the demand for oil.
• The Indian rupee will remain on the sidelines in a holiday-truncated week.

The USD/INR pair is experiencing a bullish open drive session on Wednesday as the boiling oil prices are hurting the Indian rupee. The oil prices have rebounded sharply after easing lockdown restrictions in China. Also, the higher US Consumer Price Index (CPI) at 8.5% has dented the demand for risk-perceived assets.

The Swift epidemic of Covid-19 in Shanghai forced the Chinese administration to put restrictions on the movement of men, materials, and machines. The lockdown curbs brought fears of a slump in the aggregate demand and eventually in the oil demand. China, being the biggest importer of oil in the world carries a significant impact on the oil prices. The easing of demand worries in China brought bulls back to the oil counter and a firmer rebound is clear in the oil prices. This is hurting the oil-sensitive currencies.

Meanwhile, Indian rupee investors are uncertain over the economic events this week as the Indian currency market will witness a long weekend due to holidays on Thursday and Friday. Therefore, investors will prefer to carry light positions for next week.

The US dollar index (DXY) has bounced back after a mild correction from its three-year high at 100.45. Mixed Asian markets are favoring the negative market sentiment and eventually the risk-off trade advice, which is underpinning the greenback against the Indian rupee.