The Indian rupee opens flat on Monday, with softer oil prices and further paring of bets on an October Federal Reserve rate hike easing pressure on the currency having settled at 96.3150 to the dollar on Thursday. Indian financial markets were shut on Friday for a holiday. The rupee has been under sustained pressure, convincingly slipping past the 96-per-dollar level to a fresh two-month low. A surge in US Treasury yields, which has boosted the dollar, and persistent pressure from high oil prices have been the main headwinds for the currency. The Reserve Bank of India has remained a steady presence in the market, helping slow the rupee's decline. However, with the 96-per-dollar level, closely watched by markets, now decisively breached, traders see a higher scope for the currency to weaken further. Attention this week will turn to the RBI monetary policy decision on Wednesday, with markets expecting a 25-bps rate hike to 5.50%. The case for tightening has strengthened amid broadening domestic inflation pressures, elevated crude oil prices, robust growth and tighter global financial conditions. Apart from the policy rate, markets will closely watch changes to the RBI's inflation projections, its assessment of crude oil risks and guidance on the future rate path and liquidity management. The euro weakened sharply on Monday to a 17-month low as amid a steep bond market rout stoked fears of contagion risks in the region, helping the dollar shrug off soft US jobs Data that dented near-term rate hike expectations.The euro slid to as low as $1.1161, its weakest level since May 2025 in Asian hours after clocking four straight weekly declines, weighed down by France's debt levels and concerns about political gridlock ahead of next year's election. The single currency was last down 0.67% at $1.1178, while weakening 0.4% against Swiss franc and sliding 0.34% against sterling. educed expectations of an October Fed hike could provide some support to the pair at the start of the week, although widening yield differentials and European political/fiscal concerns are likely to cap gains. Yen remains under pressure and was last trading at 157.5, additional pressure compounds under pressure from elevated US Treasury yields and uncertainty on the pace of further BoJ tightening. The “Takaichi trade” has become more two-sided, with the government recently expressing concern over yen undervaluation and Japan and the US stepping up warnings against excessive currency weakness. Intervention risk is increasing as the pair approaches 160. Oil: Brent crude remained above USD 100 pbl, after the Houthis claimed attacks on Saudi Aramco facilities, adding to concerns around regional supply risks. China’s suspension of oil-product exports has also added to concerns around refined-product supply. OPEC+ has decided to keep November production targets unchanged. Partly offsetting these pressures, G7 countries have agreed to a coordinated release of 100 million barrels of crude oil and fuel products from emergency reserves over the next four months, which could provide some limited near-term relief. Gold prices drifted higher on Monday after recent soft economic data sharply lowered expectations of a Federal Reserve rate hike in October, increasing the appeal of the non-yielding asset. Spot gold was up 0.4% to $4,158.17 per ounce by 0150 GMT. US gold futures for December delivery rose 0.6% to $4,186.40 and among other metals, spot silver gained 1.7% to $61.40 per ounce, platinum was up 0.6% to $1,708.48 and palladium firmed 0.6% to $1,175.04. www.eforexindia.com......