Rupee tumbles 12 paise against US dollar as Middle East tensions lift crude prices
The Indian Rupee fell against the US dollar as rising crude oil prices and escalating geopolitical tensions in the Middle East impacted market sentiment. Increased conflict between the US and Iran has led to concerns over global supply chains and energy costs.
Why it matters
Geopolitical instability in the Middle East is directly affecting emerging market currencies and global oil prices, creating economic volatility.
Rupee started the week on a negative note, falling 12 paise against the US dollar in early trade on Monday as rising crude oil prices and escalating tensions in the Middle East fuelled demand for the greenback.Rupee traded at 96.42 against the US dollar after opening at 96.53 in the interbank foreign exchange market, compared with its previous close of 96.30. The local currency had ended Friday's session 12 paise stronger, supported by upbeat domestic market sentiment and lower US treasury yields.According to forex traders, foreign capital outflows from equity markets also contributed to the weakness in rupee.Oil prices remained elevated as Brent crude, the global benchmark, rose 2.45% to $90.26 a barrel in futures trade.
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