Overview
- The currency rebounded from a record weakness near ₹92.16 per dollar on Wednesday, a slide linked to higher Brent prices, tighter dollar liquidity and West Asia tensions.
- Reports from traders pointed to sustained RBI action in spot and forwards, with additional bond-market moves that pulled the 10-year yield below about 6.65%.
- By early Friday, the rupee hovered around ₹91.62 as a 30-day U.S. waiver for Indian purchases of Russian crude reduced near-term supply worries, Brent traded near $84.5 and the dollar index eased to about 98.9.
- Foreign investors continued to sell equities, with ₹8,752.65 crore offloaded on Wednesday and ₹3,752.52 crore on Thursday, keeping pressure on capital flows.
- Analysts caution that prolonged Strait of Hormuz risks and elevated oil could widen the current account deficit and stoke imported inflation, potentially requiring further RBI support.