The in the rupee came as Brent crude prices climbed towards USD 98 per barrel. Brent futures rose 0.63% to around USD 97.61, driven by concerns over possible disruptions to oil supplies amid escalating US-Iran tensions
Usually, rising oil prices negatively affect the rupee due to the country’s heavy reliance on imported oil. Any rise in the country’s import bill leads to higher dollar requirements.
This latest development caused concerns regarding the transport of energy through the Strait of Hormuz, which is considered an important route for oil shipments. As reported by Reuters, Brent crude was at about USD 97.49 per barrel on Tuesday.
