Rupee headed for new low past 94 on fears Iran war may drag on

The Indian rupee is set to weaken past 94 per dollar, pressured by risk aversion, rising U.S. Treasury yields and Brent ​crude holding past $100 a barrel on concerns the war in Iran ‌will drag on. The 1-month non-deliverable forward indicated the rupee will open in the 94.20-94.25 range versus the US dollar, after settling near its lifetime low of 93.9775 on Wednesday. Indian ​financial markets were off on Thursday for a local holiday. “The sense now ​is that the Middle East conflict will persist longer than ⁠initially assumed, triggering repricing across assets. The rupee, obviously, will have to ​adjust alongside,” a currency trader at a bank said. Indian equities were also set to open ​lower on the day, halting a tentative recovery. Despite a 3.5% rally in equities over the last two sessions, foreign investors were net sellers on both days, tempering any positive spillover for the ​rupee.