Rupee Plunges to 1-Month Low Amid Oil Price Jitters

The Indian rupee has hit its lowest level in over a month, dropping to nearly 95.92 per US dollar on Tuesday.

This decline is largely due to higher oil prices and growing expectations of a US Federal Reserve rate hike, both of which are weighing on the currency.

India's reliance on imported energy means that rising Brent crude prices lead to an increase in its import bill, fueling inflation concerns and putting downward pressure on the rupee.

The Reserve Bank of India (RBI) has been intervening to slow the rupee's slide by getting state-run lenders to sell dollars, but this move is also seen as a 'sterilization' effort to prevent currency support from inadvertently loosening financial conditions.