Rupee Hits Sixth Straight Loss as Oil Prices Soar

The Indian rupee continued its downward trend for the sixth consecutive session, closing at 95.88 against the US dollar on Tuesday.

This decline comes amidst escalating Middle East conflict and soaring Brent crude oil prices, which reached $108 per barrel, raising concerns over inflation and India's external trade balance.

Forex traders pointed out that increased demand for the dollar from oil importers has sparked fresh worries about the country's economic stability.

According to Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, 'We expect the rupee to trade with a negative bias on risk-off sentiments in global markets and worries over rising global treasury yields.'

Dilip Parmar, Research Analyst at HDFC Securities, also weighed in, stating that 'Heightened risk aversion ahead of the critical FOMC rate decision further weighed on Asian currencies, including the domestic rupee.'