The Indian Rupee depreciated against the US dollar on Monday, weighed down by worries over inflationary pressures and increased dollar demand. Persistent concerns about rising inflation have put downward pressure on the rupee.

Increased dollar demand from importers and banks further exacerbated the rupee’s decline. Market participants are closely watching upcoming inflation data releases and the Reserve Bank of India’s (RBI) policy response.

Analysts suggest that the rupee’s movement will largely depend on inflation trends and the RBI’s intervention strategy. The central bank’s actions to manage liquidity and curb inflation will be crucial in determining the rupee’s near-term trajectory.

The impact of global crude oil prices on the Indian economy and the rupee is also being closely monitored. Higher oil prices can worsen India’s trade deficit and put additional pressure on the currency.