Oil Surges Above $100 as Treasury Yields Reach 5.3%

The surge in crude prices and rising U.S. Treasury yields are putting pressure on global currencies, particularly those of major energy importers.

Brent oil has surpassed $100 per barrel for the first time since renewed supply concerns emerged after China suspended oil exports, exacerbating geopolitical disruption in the market.

The impact is being felt in India, where the rupee has fallen 0.5% to 96.315 per dollar, its weakest level in two months, according to Reuters.

Higher crude prices are worsening the currency equation for major energy importers, increasing demand for the U.S. dollar while widening trade deficits and feeding domestic inflation.