MCX Crude retreats as rupee stabilizes, halting three-hour rally

WHAT HAPPENED MCX Crude pulled back to 8898 INR/bbl at 03:27 pm IST, posting a -0.15% decline after a sharp three-hour rally that peaked at 9197 INR/bbl (+3.94%) at 03:09 pm IST. USD/INR weakened to 96.29 INR (-0.12%), reversing the rupee depreciation that had underpinned the earlier export-linked support. Silver and natural gas also retreated, down -0.89% and -0.90% respectively, signaling broad-based profit-taking momentum.

WHAT IT MEANS The reversal signals exhaustion in the rupee-weakness trade that fueled crude's 3.94% intraday gain. With USD/INR now consolidating near 96.29 INR, the export tailwind has softened. MCX traders should recognise this pullback as retracement within the broader uptrend—the 9000–9197 INR zone now acts as a critical resistance band for renewed momentum.

WHAT TO WATCH Support emerges at 8850 INR/bbl. A close below this level would confirm profit-taking; a bounce back above 9010 INR/bbl would resume the rally trajectory.