Brent crude nearing $88 and rising US yields weigh on the rupee, with RBI intervention limiting losses near 95.35-95.40 per dollar.
The Indian rupee is set to open weaker, driven by a surge in Brent crude prices toward $88 and a rebound in US 10-year yields. These factors increase India’s import costs and strengthen the dollar, pressuring the currency near 95.35-95.40 per dollar.
Over the past three sessions, the rupee traded between 95.10 and 95.30, held in check by heavy dollar demand and capped losses from RBI intervention. Traders note the currency would likely breach 95.50 without central bank support, highlighting its reliance on official action rather than organic strength.
Geopolitical tensions in the Hormuz Strait remain a key risk, with oil markets sensitive to developments in US-Iran negotiations. The rupee’s near-term trajectory appears tied to external factors rather than domestic economic drivers.