Rupee Slips to 7-Week Low
The Indian rupee fell to around 95.8 per dollar, remaining near seven-week lows as persistent oil price gains, elevated US Treasury yields and growing expectations of a Federal Reserve rate hike weighed on the currency. Brent crude rose above $107 a barrel, extending its monthly rally to more than 18%, as stalled US-Iran talks, fresh Houthi attacks on Saudi Arabia and disruptions to energy infrastructure heightened concerns over supply shortages. The surge in oil prices fueled inflation worries and pushed the US 10-year Treasury yield to 5% for the first time in nearly three years, while markets see a Fed rate hike on Wednesday as almost certain. Meanwhile, the RBI has repeatedly intervened near 95.80 per dollar, helping limit further losses. Market participants also digested fresh data as India’s inflation rate rose to 4.82% in August from 4.45% in July, its highest since December 2024 and in line with expectations, reflecting renewed energy price pressures and a weaker rupee.
8 per dollar, remaining near seven-week lows as persistent oil price gains, elevated US Treasury yields and growing expectations of a Federal Reserve rate hike weighed on the currency. Brent crude rose above $107 a barrel, extending its monthly rally to more than 18%, as stalled US-Iran talks, fresh Houthi attacks on Saudi Arabia and disruptions to energy infrastructure heightened concerns over supply shortages. The surge in oil prices fueled inflation worries and pushed the US 10-year Treasury yield to 5% for the first time in nearly three years, while markets see a Fed rate hike on Wednesday as almost certain. 80 per dollar, helping limit further losses.
45% in July, its highest since December 2024 and in line with expectations, reflecting renewed energy price pressures and a weaker rupee.