Indian Rupee – Update

Advisory Bazaar Info Services

🔹 Amid rising inflation concerns and higher US Treasury yields, the Indian rupee is expected to trade weaker against the US dollar on Tuesday, around the ₹95.70–96.00 range.

🔹 Indian markets were closed on Monday due to a public holiday. The rupee had closed at ₹95.55 per US dollar on Friday.

🔹 ₹95.80 remains a key level for the rupee. Markets will closely watch for possible RBI dollar sales/intervention around this level.

🔹 A sustained move below ₹95.80 could trigger further dollar buying, with ₹96.00 emerging as the next key psychological level.

🔹 Rising US–Iran tensions and broader geopolitical risks have pushed crude oil prices higher, increasing concerns over oil supplies through the Strait of Hormuz.

🔹 Brent crude has risen more than 1% to around $107.20 per barrel and is up nearly 18% so far this month.

🔹 Higher crude oil prices have revived inflation concerns, contributing to a rise in US Treasury yields. The 10-year US Treasury yield has moved close to 5%.

🔹 Rising oil prices have prompted markets to reassess the US interest-rate outlook, strengthening expectations of higher rates. This is supporting the US dollar and putting further pressure on the Indian rupee.