The Indian rupee is set to weaken toward the 96 level against the US dollar, driven by a combination of rising crude oil prices and elevated US Treasury yields.
Traders expect the currency to open in the 95.94-95.98 range, a notable slide from Monday’s settlement of 95.62.
The move reflects immediate pressure on emerging-market currencies as global risk sentiment cools.
Brent crude has climbed on persistent tensions between the US and Iran, adding to import costs for India, which relies heavily on energy imports.
Simultaneously, the US dollar has strengthened as Treasury yields remain high, partly due to hawkish signals from Federal Reserve officials.
This dual pressure creates a challenging environment for the rupee, which has already seen volatility in recent weeks.