Rupee Falls Amid Oil Price Hike and Fed Rate Hike Fears

The Indian rupee hit a low of 95.56 against the US dollar on Monday morning, driven by rising crude oil prices and concerns over a potential Federal Reserve rate hike in September.

Rising Brent crude oil prices added to the pressure on the rupee, with a renewed Middle East supply-risk premium driving up futures trade. The global oil benchmark rose 1.34% to $89.28 per barrel.

The Reserve Bank of India is intervening in the market to stem significant depreciation in the rupee, according to forex traders. They also point out that better-than-expected flows under the FCNR(B) scheme have boosted investor sentiments.