Rupee Weakens Against Dollar Amid Oil Price Rise

The Indian rupee weakened against the US dollar in early trade on Monday, dropping to 95.56 per USD.

The fall is attributed to rising crude oil prices and geopolitical tensions.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, stated that market participants have increased the probability of a September Fed rate hike, causing US Treasury yields to rise and triggering a broad dollar rally.

Bhansali also noted that the RBI is intervening in the market to prevent significant depreciation of the rupee.