The Indian rupee weakened beyond the Rs.96-per-dollar mark on Tuesday, touching a two-month low of Rs.96.1450. Rising crude prices and concerns over energy supplies linked to the US-Iran conflict have added pressure to the currency, while foreign investors have continued to withdraw funds from Indian equities.
For India, higher crude prices can increase the import bill and put additional pressure on inflation and the current account. Foreign portfolio investors have reportedly pulled around $3.7 billion from Indian equities during September so far, adding another factor being monitored by currency and equity-market participants.
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