Rupee Slips 13 Paise as Crude Prices Rise, Fed Rate Hike Bets Strengthen Dollar

The Indian rupee has opened weaker against the US dollar for the day, down by 13 paise to 95.56. The weakness of the rupee is attributed to higher crude oil prices and geopolitical tensions that are weighing on the currency. Additionally, growing expectations of a September Federal Reserve rate hike have boosted the value of the dollar.

Market participants believe that the rise in US Treasury yields has supported a broad-based rally in the dollar, putting further pressure on investor sentiment. According to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, the rupee is expected to remain between 95.25 and 95.75.

The Reserve Bank of India is intervening in the foreign exchange market to prevent any significant depreciation in the rupee. Meanwhile, oil prices have moved higher due to renewed concerns over supplies from the Middle East. Brent crude futures climbed 1.34% to $89.28 a barrel.