Indian rupee endures sharpest fall in over a month as Brent oil barrels towards $100

Business Recorder reported that the Indian rupee closed at 94.8175 per dollar on Tuesday, its sharpest fall since late July. A third straight daily rise in oil prices lifted Brent to near $100 a barrel, adding to concerns over prolonged energy supply disruption linked to the Iran war. The currency finished the session 0.35% lower than its previous close.

Yemen's Houthis struck several Saudi energy sites, while Tehran's threat of “economic warfare” against the United States added to tensions. Dealers reported that state-owned lenders sold dollars, probably for the Reserve Bank of India, which softened the decline without seeming to fix a particular level. Repeated central bank action had lifted the currency to its strongest level in over two months last week, but a fresh oil rally and importers' hedging have halted that gain.

Asian equities fell, pulling MSCI's regional stock gauge down about 1%, while Mumbai shares slipped 0.6%. ING, in a note, expects dollar strength to persist for now, though Friday's US consumer inflation reading remains a notable hazard. Odds of a Federal Reserve rate increase next week were put at roughly 60%.