Rupee Tumbles on Crude Oil Price Hike 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 demand for dollars from oil importers, which raised concerns over India's external balance and inflation, according to forex traders.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said that the surge in crude oil prices and heightened tensions have increased safe-haven demand for the dollar and pushed US Treasury yields higher.