Rupee Slumps as Oil Prices Soar Amid Middle East Tensions

The Indian rupee depreciated significantly against the US dollar on Tuesday, hitting a provisional close of 95.92 due to escalating Middle East conflict and surging Brent crude oil prices.

Brent crude oil prices rose over 2 percent to trade above $108 per barrel amid fears of a tightening oil market after Saudi Arabia closed a critical pipeline following a drone attack.

Oil importers' demand for the US dollar led to fresh concerns over inflation and India's external trade balance, while weak domestic markets and worries over rising global treasury yields further dented investor sentiment.