Rising Oil Costs Test RBI's Support for Rupee

Indian inflation rose to 4.82% in August from 4.45% in July, according to recent data.

This increase is attributed to higher global crude and domestic fuel costs, as well as an erratic monsoon affecting food prices.

As a result, economists are warning that the RBI may need to take action to support the rupee, which has already seen a 1.5% appreciation since September 4th.

Bank of America is forecasting a US dollar to rupee exchange rate of 98 by year-end, while MUFG predicts 95.50. Goldman Sachs' near-term forecast is slightly lower at 96.