Oil pangs resurface for rupee, options market gauge signals bearish bias

The Indian rupee closed at 95.62 per dollar, down 0.3 percent, weighed by a 3 percent rise in Brent crude to 78 dollars per barrel amid Gulf hostilities, with traders noting likely RBI intervention to limit losses. Options market signals showed a bearish bias on the rupee, with the 1-month 25-delta risk reversal drifting to 0.3. Separately, India's merchandise trade deficit widened to 30.43 billion dollars in June, and consumer inflation data is expected to show CPI rising above the RBI's 4 percent target for the first time in 16 months, with Goldman Sachs expecting 25 basis point rate hikes each in October and December.