The geopolitical backdrop in the Middle East remained tense after renewed threats to Iranian infrastructure from President Donald Trump, although reports of a potential deal could limit the demand for the dollar.
Moody's Ratings has slashed India's economic growth projections for the current fiscal to 6%, from 6.8% earlier. The credit ratings agency said the US-Israeli war against Iran and its impact on the global energy market will weigh on India's growth momentum and heighten inflation risks.
The war has effectively blocked the Strait of Hormuz, the world's most important oil route, since the end of February and cut exports from OPEC+ members Saudi Arabia, the United Arab Emirates (UAE), Kuwait and Iraq.