Overview
- The rupee, which briefly crossed 94 per dollar on Monday before closing at 93.53, hovered near 93.9–94 in early Wednesday trade as volatility persisted.
- Conflicting signals over possible US–Iran talks whipsawed oil, with a short dip after President Trump delayed planned strikes giving way to a rebound once Iran denied talks and supply fears resurfaced around the Strait of Hormuz.
- Foreign investors kept selling Indian assets, pulling a net Rs 10,414 crore on Monday and more than Rs 1 lakh crore this year, which added to dollar demand and pushed the currency lower.
- Traders reported intermittent Reserve Bank of India action to curb sharp swings, and official data showed forex reserves fell by $7.052 billion in the week ended March 13 as dollars were supplied to the market.
- Analysts say the rupee could slip toward 94–95 if Brent stays above $100, while Bank of America projects about 94 by June, a path that would lift fuel and electronics costs for households and businesses since India buys most of its oil in dollars.