The US dollar touched a four-year high on Monday, gaining against most emerging-market currencies. The rupee was among the currencies under pressure.

A strong dollar makes imports costlier for developing countries. It also raises the burden of dollar-denominated debt.

Currency traders said rising US bond yields are supporting the dollar. Investors are moving money into American assets for safety.

Analysts warn that a prolonged strong dollar could slow growth in emerging markets. Central banks may intervene to protect their currencies.

The rupee’s weakness against the dollar adds to India’s oil import bill. Traders said the RBI is watching the currency closely and may act to limit sharp moves. Investors are watching upcoming US economic data for clues on the dollar’s next move. A weaker dollar would bring relief to emerging-market importers. The dollar index is now at levels not seen since 2022, market data showed. Emerging-market central banks are weighing their options as the pressure builds.