Rupee Slumps to Three-Month Low as Brent Crude and US Bond Yields Surge

The Indian rupee reached its weakest level in nearly three months on Tuesday as Brent crude oil prices surged past $108 per barrel and US 10-year bond yields rose above 5%, a rare milestone. The currency closed at 95.95, down from its previous close of 95.55.

The Reserve Bank of India (RBI) sold dollars at weaker levels, traders said, adding to the rupee's pressure. Brent crude remained elevated above $108 levels, increasing demand for imports and putting further downward pressure on the currency.

Traders now focus on whether the RBI will continue to defend the rupee near 95.59-96 levels. If it breaches this level, the currency may slide to 96.10-96.20, traders said.