Rupee Falls Amid Oil Price Rise, Fed Rate Hike Expectations

The Indian rupee fell by 13 paise to trade at 95.56 against the US dollar on Monday morning, weighed down by rising crude oil prices and geopolitical tensions.

Forex traders attributed the decline to increased expectations of a September Federal Reserve rate hike, which pushed up US Treasury yields and triggered a broad dollar rally.

Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, noted that the rupee opened lower due to the dollar index being at 99.62 levels, while other assets fell from their Friday levels.

Bhansali predicted that the rupee would remain in a range of 95.25 to 95.75, with exporters selling near 95.60 and importers buying dips.