FX.co ★ Rupee Extends Losses on Higher Oil

The Indian rupee weakened to around 95.9 per dollar, extending its losses from the previous session as stalled US–Iran negotiations drove oil prices higher, while rising US Treasury yields and a stronger greenback added further pressure. Brent crude advanced roughly 2.5% to about $107 a barrel after US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz and halt hostilities, heightening concerns over prolonged supply disruptions. At the same time, the yield on the 10-year US Treasury note climbed to 5.2%, its highest level in nearly two decades, supported by robust US economic data and mounting expectations of another Federal Reserve rate hike. Meanwhile, intervention by the Reserve Bank of India around the 96-per-dollar mark continued to provide a backstop for the rupee, with the central bank repeatedly stepping in to prevent a sustained break above this key level.