FX.co ★ Indian Rupee Hits 1-Month Low

The Indian rupee weakened to around 91.2 per dollar, its lowest level in a month, as a sharp rise in global oil prices and broad-based gains in the US dollar weighed on the currency. Heightened tensions in the Middle East pushed Brent crude higher, fueling concerns over potential supply disruptions. As a major oil importer, India is highly exposed to sustained increases in energy prices, which can affect both its trade balance and inflation outlook. At the same time, the US dollar strengthened as investors shifted toward traditional safe-haven assets amid the latest wave of geopolitical uncertainty, adding further pressure on the rupee and other emerging market currencies. Market participants are also watching for any indication of intervention or policy signals from the Reserve Bank of India should volatility persist. Over the last four weeks, the rupee has fallen about 1% against the US dollar and is currently trading roughly 4% weaker than it was a year ago.