On Monday, the Indian rupee weakened by 0.7%, settling at 93.38 against the US dollar due to a sharp rise in crude oil prices, which surged 7.69% to $102.52 per barrel amidst escalating tensions between the US and Iran following the collapse of peace talks. This decline in the rupee, which had previously appreciated 1.54% in April, reflects renewed concerns over inflation and the impact of rising oil prices on India's import bill. The dollar index rose 0.32%, further pressuring the rupee as oil companies increased their demand for dollars. Concurrently, government bond yields also increased, with the benchmark 10-year yield rising to 6.94%, indicating market expectations that higher oil prices could limit monetary easing. Traders noted that the rupee's performance is closely tied to global oil prices and geopolitical developments, with significant attention on foreign portfolio flows and RBI liquidity conditions. Bond and foreign exchange markets will be closed on Tuesday in observance of Ambedkar Jayanti.