Rising oil prices hurt India's weak spot, rupee falls to a three-month low.

Due to the escalation of conflicts in the Middle East, international oil prices surged, causing the Indian rupee to fall to its lowest point in three months, highlighting the vulnerability of this South Asian country in the field of energy security. On Monday, the Indian rupee dropped 0.5% against the US dollar to 86.8875 rupees per dollar, eventually closing down 0.4% at a new low since March 17. This trend was consistent with most Asian emerging market currencies. Indian sovereign bonds also declined, with the 10-year government bond yield rising by 4 basis points to 6.30%. Since the escalation of tension between Iran and Israel this month, Brent crude oil prices have risen by approximately 20%. As the world's third-largest importer of crude oil, India's energy supply is heavily dependent on overseas procurement. The continuous increase in oil prices will pose a dual pressure on India's fiscal situation and inflation outlook. Ashhish Vaidya, Head of the Treasury Department at DBS Bank's Mumbai Branch, said, "Market volatility will continue until a solution to the situation in the Middle East becomes clear. The central bank is expected to intervene to stabilize the volatility."