FX.co ★ Indian Rupee Extends Decline

The Indian rupee weakened beyond 93 per dollar, extending its slide after touching record lows, as surging oil prices and escalating geopolitical tensions in the Middle East continued to dampen sentiment. The standoff between US President Donald Trump and Iran over control of the Strait of Hormuz has intensified: Washington has issued a 48-hour ultimatum to reopen the waterway, while Tehran has warned it could close the passage entirely if its infrastructure comes under attack. The rupee has lost 3% since the conflict began and remains under sustained pressure as the crisis enters its fourth week. While traders see a possibility of central bank intervention to rein in speculative positioning after the sharp drop, sentiment remains fragile. Market participants are now looking to preliminary purchasing managers’ index data for further clues on economic activity amid the ongoing uncertainty.