As crude oil prices rose above $100 per barrel amid the conflict in West Asia, the rupee fell to a new low against the US dollar on Wednesday.
According to Bloomberg data, the native currency finished the session at 92.63 against the dollar, down 24 paise, or 0.27%, from the previous close. According to dealers, the central bank largely avoided the markets.
Since the start of the wars in West Asia, the rupee has continued to decline, falling 1.8%, bringing the total devaluation in FY26 to 8.4%.
Due to Reserve Bank of India market intervention, the rupee has been battling the 92.50 level for the last two to three days. Before Thursday’s holiday, there was little liquidity, which led to stop-losses when the level was crossed.
The currency is still being negatively impacted by ongoing dollar outflows brought on by foreign portfolio investors’ (FPI) stock sales. “FPIs are increasing demand for dollars by selling in the equity market and working with oil importers.
As long as crude oil prices stay high, the currency is generally anticipated to continue under pressure. It is anticipated that the RBI will step in to curb excessive depreciation.
