Rupee Slumps as Crude Prices Soar Amid US-Iran Tensions

The rupee depreciated against the US dollar on Tuesday due to elevated Brent crude oil prices and heightened Middle East tensions. The Indian currency fell 30 paise to 95.84 against the greenback in early trade, a loss of 30 paise from its previous close.

With Brent crude touching USD 106 per barrel, increased dollar demand from oil importers raised concerns over India's external balance and inflation, according to forex traders.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the surge in crude oil prices and heightened tensions in the Middle East have increased safe-haven demand for the dollar and pushed US Treasury yields higher.