The Indian rupee is poised to resume its slide against the US dollar on Wednesday, with traders expecting the currency to open in the 96.40-96.45 range.
This marks a reversal of a brief relief rally that saw the rupee inch up 0.2% to close at 96.23 in the previous session.
The renewed weakness underscores the mounting pressure on emerging-market currencies as global crude oil prices continue to surge.
The depreciation is driven by India’s heavy reliance on energy imports, which widens the trade deficit when benchmark prices rise.
With Brent crude trading at elevated levels, the cost of servicing the nation’s import bill has intensified, forcing the Reserve Bank of India to manage capital outflows and currency volatility.
The rupee’s trajectory remains tightly coupled to the energy complex, where supply disruption risks in the Gulf region have kept a premium on crude.