Rupee Falls Amid Crude Price Surge and Geopolitical Tensions
The Indian rupee depreciated by 13 paise to trade at 95.56 per US dollar on Monday morning, weighed down by rising crude oil prices and geopolitical tensions.
Forex traders pointed out that market participants have increased the likelihood of a September Fed rate hike, pushing up US Treasury yields and triggering a broad dollar rally, which further dampened investor sentiment.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, noted that the rupee opened lower as the dollar index was at 99.62, while other assets declined from their levels on Friday.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.62, marginally down by 0.07%. Brent crude, the global oil benchmark, was higher by 1.34% at USD 89.28 per barrel in futures trade.