The Indian rupee strengthened to around 91.5 per dollar, rebounding after hitting a record low in the previous session, as intervention by the Reserve Bank of India helped stabilize the currency. According to traders, the central bank sold dollars through state-run banks before the local market opened, lifting the rupee from an early level near 92.1 per dollar.
Despite the recovery, underlying pressures persisted, with elevated global oil prices and a strong US dollar continuing to weigh on the rupee. Brent crude remained above $80 per barrel as tensions involving the US, Israel, and Iran heightened concerns over potential disruptions in the Strait of Hormuz, a critical route for India’s energy imports. Sustained high crude prices risk straining India’s external balance and increasing dollar demand from importers. At the same time, rising geopolitical uncertainty has led foreign investors to pare back their exposure to Indian equities this week.
