The Indian rupee weakened against the U.S. dollar after crude oil prices jumped sharply following renewed military tensions between the United States and Iran. Since India imports a significant portion of its crude oil requirements, higher oil prices could widen the country’s trade deficit and increase inflationary pressure.
Currency dealers expect the rupee to remain sensitive to movements in oil prices over the coming days. Investors are also watching for any intervention by the Reserve Bank of India to curb excessive volatility in the foreign exchange market.
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