Rupee Sinks to Fresh Low Amid Brent Crude Surge

The Indian rupee fell by 30 paise to 95.84 against the US dollar in early trade on Tuesday, driven by elevated Brent crude oil prices and heightened Middle East tensions.

Brent crude touched USD 106 per barrel, causing increased demand for the dollar from oil importers, which raised concerns over India's external balance and inflation.

Forex traders attributed the rupee's decline to the surge in crude oil prices and the safe-haven demand for the dollar due to tensions in the Middle East.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that the rise in US-Iran tensions has increased safe-haven demand for the dollar and pushed US Treasury yields higher.