Rupee slips as oil prices jump, modest portfolio inflows cushion fall

The Indian rupee slipped to 95.16 against the dollar from its previous close of 94.9675 as oil prices surged nearly 3% following Iran-US military hostilities in the Middle East, including Iranian strikes on US military sites in Bahrain and Kuwait. Bond yields rose and the Nifty 50 declined 0.5% as Asia Pacific stocks fell, while modest dollar sales by foreign banks on behalf of custodial clients and capital flow measures by the RBI cushioned some of the currency's decline. Traders are also watching the US Fed June policy meeting minutes for cues on the rate path, with futures pricing in about 34 bps of tightening for the remainder of the year.