The Indian rupee is set for a turbulent trading session as it confronts a confluence of macroeconomic headwinds and geopolitical risks.
After settling at 95.8525 per US dollar on Tuesday, the currency is expected to open marginally higher before facing renewed selling pressure later in the day.
This volatility comes as traders return from a long weekend to find global energy markets reacting sharply to intensifying geopolitical tensions.
The rupee’s recent recovery, largely supported by intervention from the Reserve Bank of India (RBI), now faces twin headwinds: volatile crude oil prices and uncertainty surrounding the Federal Reserve’s policy path.
Higher US Treasury yields are adding immediate pressure on emerging market currencies, including the rupee, as investors reassess risk premiums in a shifting rate environment.
Global energy markets are reacting to intensifying geopolitical risks, which are weighing heavily on the rupee.