Overview
- The rupee slipped past the 95 mark on Thursday, trading around 95.08–95.33 per dollar after Brent crude climbed above $100 a barrel.
- Escalating attacks and exchanges in West Asia pushed oil higher and sent investors toward dollars, which, together with importer hedging, intensified demand for foreign currency.
- The Reserve Bank of India stepped into markets with spot dollar sales and likely near‑maturity sell‑buy FX swaps to reduce volatility and absorb surplus rupee liquidity.
- Foreign institutional investors sold Indian equities over the last sessions and temporary FCNR(B) inflows have faded, removing a cushion that had supported the rupee.
- Markets are watching imminent US Fed policy and domestic CPI prints because sustained high oil prices could widen India’s import bill by roughly $12–15 billion for every $10 rise in crude and keep pressure on the currency.