Indian Rupee Tumbles Against US Dollar Amid Rising Oil Prices and Hawkish Fed Expectations

The Indian Rupee (INR) has fallen further against the US Dollar (USD), reaching near 95.90 on Thursday.

This decline comes as oil prices have regained ground, with the MCX Crude Oil contract expiring on October 19 trading 0.45% lower at around Rs. 8,785 after rebounding strongly from a two-week low of Rs. 8,496.

The US Dollar Index (DXY) has also strengthened, reaching an eight-week high of 101.23 as the Federal Reserve's interest rate hike expectations continue to support the Greenback.

Iranian President Masoud Pezeshkian's speech at the United Nations General Assembly, where he vowed that Iran would not surrender to the US, has also contributed to higher oil prices and put pressure on currencies like the INR.