Rupee Falls to 95.56 Amid Rising Oil Prices and Geopolitical Tensions

The Indian rupee fell to 95.56 against the U.S. dollar in early trade on Monday, August 31, due to rising crude oil prices and geopolitical tensions.

Rising crude oil prices have put pressure on the rupee, which is also being affected by a broad dollar rally triggered by expectations of a September Fed rate hike.

Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, said that market participants have raised the probability of a September Fed rate hike, pushing U.S. Treasury yields higher and triggering a dollar rally.

The dollar index was trading at 99.62, lower by 0.07%, while Brent crude oil prices were up 1.34% at $89.28 per barrel.