INR likely to weaken amid surging international oil prices

The Indian rupee is likely to take a huge hit in opening trades on Monday as international oil prices surged back after a brief pause late last week. However, failed talks between US and Iran over the weekend have renewed tensions and supported greenback which typically weighs on rupee. . U.S. stock futures were down sharply as Washington prepared a blockade on Iranian port traffic after talks between the U.S. and Iran failed to produce an agreement to end the conflict in the Middle East. The failure of US-Iran talks have heightens fears of prolonged energy shock, sending oil prices to surge this morning. The Indian rupee pared initial gains and settled 24 paise lower at 92.76 against the US dollar on Friday, weighed down by risks from rising global tensions, especially the US-Iran conflict. Rupee witnessed high volatility as the deadline for the RBI's instructions to banks to curb their overnight positions to USD 100 million closed on Friday.