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The Indian rupee depreciated by 56 paise to settle at 95.74 (provisional) against the US dollar on Monday, weighed down by elevated crude oil prices and a stronger American currency amid rising geopolitical tensions.
According to forex traders, heightened risk aversion in global markets led the USD/INR pair to reverse gains recorded in the previous trading session. Investor sentiment remained under pressure as escalating geopolitical concerns boosted demand for safe-haven assets, supporting the US dollar.
The sharp rise in crude oil prices further weighed on the domestic currency, as higher energy costs raise concerns over India's import bill and inflation outlook. Additionally, the strengthening US dollar index added to the pressure on the rupee during the session.
Market participants will continue to monitor developments in West Asia, movements in crude oil prices, and upcoming global economic data for further cues on currency market direction.
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