Indian Rupee Slips as Oil Prices Surge
The Indian Rupee started the week on a negative note against the US Dollar due to higher oil prices over the weekend. The USD/INR pair rose by 0.15% to near 95.95.
Currencies from economies reliant on oil imports, like India's, tend to underperform in a high-oil-price environment. This is because they struggle to meet their energy needs when oil prices are high.
The Reserve Bank of India continues to support the Indian currency through intervention in both spot and Non-Deliverable Forwards (NDFs) markets.
Elevated US bond yields due to firm expectations that the Federal Reserve will hike interest rates again this year continue to be a key concern for riskier assets. The 10-year US Treasury Yields remain firm near its 19-year high of 5.23% posted on Friday.