Rupee Depreciates Amid Oil Price Surge and Middle East Tensions
The Indian rupee depreciated by 30 paise to 95.84 against the US dollar in early trade on Tuesday, due to elevated Brent crude oil prices and heightened Middle East tensions.
Brent crude touched USD 106 per barrel, increasing dollar demand from oil importers and raising concerns over India's external balance and inflation, according to forex traders.
Forex and equity markets were closed on Monday on account of Ganesh Chaturthi, but resumed trading on Tuesday with the rupee opening at 95.84 against the US dollar.
Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, stated that 'the surge in crude oil prices and heightened tensions in the Middle East have increased safe-haven demand for the dollar and pushed US Treasury yields higher.'