Rupee Under Pressure as Brent Crude Crosses $107 and US Yields Rise

The Indian rupee is expected to remain under pressure on Tuesday, with the currency facing a test around the Rs.95.80-per-dollar level. The rupee closed at Rs.95.55 on Friday after losing more than 1% during the previous week.

Higher crude prices and rising US Treasury yields are increasing pressure on the currency. Brent crude rose above $107 a barrel as supply concerns intensified following developments around the Strait of Hormuz and renewed attacks in the Middle East. A sustained move beyond Rs.95.80 could increase dollar demand and raise the possibility of the rupee moving towards Rs.96.