Rupee Takes Hit as US-Iran Tensions Escalate
The Indian rupee declined by nearly 20 paise to close at 96.03 against the US dollar on Monday, following risk-off sentiments in global markets after the US rejected a deal proposal by Iran.
Forex traders said that the stalemate between the US and Iran continued to deteriorate global risk sentiments, causing falling risk assets and a surge in crude oil prices to pressurize the rupee.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, stated that 'the Indian rupee declined by nearly 20 paise on risk-off sentiments in global markets after the US rejected a deal proposal by Iran, diminishing hopes of reopening the Strait of Hormuz.'
Choudhary also added that the rupee is expected to trade with a negative bias as global risk sentiments deteriorated. Brent crude oil breached the USD 108 per barrel mark while global equities tanked.