Rupee slips 0.35% to 94.8175 as oil jumps near $100
The rupee took its sharpest dip since late-July, falling 0.35% to close at 94.8175 per dollar on Tuesday.
This drop happened as global oil prices shot up close to $100 a barrel, thanks to fresh tensions in the Middle East: think attacks on Saudi energy sites and Iran warning of "economic warfare" against the US.
All this has made investors nervous about energy supplies and put extra pressure on the rupee.
State-run banks' dollar sales insufficient
State-run banks tried to soften the blow by selling dollars, but it wasn't enough to stop the rupee from losing ground after its more than two-month peak last week.
The ripple effect hit other emerging market currencies like Thailand's baht and South Africa's rand, while Asian stocks and Mumbai's market both slid too.
Analysts say what happens next depends a lot on where oil prices go from here, and how the upcoming US inflation report shakes out.