Rupee Weakens Against US Dollar Amid Oil Price Surge and Tightening Fed Policies

The Indian rupee weakened against the US dollar on Monday due to several factors. The uncertainty surrounding the Strait of Hormuz and Middle Eastern oil supplies remained a concern after US President Donald Trump rejected an Iranian proposal aimed at resolving the conflict.

This rejection led to a surge in crude oil prices, which weighed on the rupee's value. Additionally, the stronger US dollar, higher US Treasury yields, and increased bets on tighter Federal Reserve monetary policies also contributed to the rupee's decline.

The rupee touched a low of 95.87 before rebounding slightly, but it remains weaker by 20 paise from its previous close of 95.75 on Friday. The currency is currently trading at 95.95. Foreign institutional investors (FIIs) sold equities worth Rs 3,693.93 crore on a net basis on Friday, adding to the rupee's pressure.