Indian Rupee Tumbles to Two-Month Low Amid Oil Price Surge

The Indian Rupee (INR) has hit a two-month low against the US Dollar (USD), trading at around 96.13 on Tuesday, as hopes of near-term diplomacy with Iran recede.

The price of oil surged following reports that US President Donald Trump has pushed back on agreements to roll back sanctions on Iran and release frozen Iranian funds in return for concrete steps on the nuclear program.

Trump denied the report, stating 'I offered them NOTHING,' which led to a rally in oil prices. The MCX Crude Oil contract expiring on October 19 jumped by 2% to near Rs. 9,020.

Currencies from economies that rely heavily on oil imports tend to underperform in high-oil-price environments, contributing to the Indian Rupee's decline.