Rupee Falls Past 95 Against Dollar as Oil Surge, RBI Moves Weigh on Markets
NEW DELHI — The Indian rupee weakened past the 95-per-dollar mark for the first time on Monday, pressured by rising global oil prices and central bank measures aimed at tightening currency positions.
The rupee touched an intraday low of 95.2 against the U.S. dollar before closing at a record low of 94.83, slightly weaker than Friday’s close of 94.81.
The currency has declined 4.4 percent against the dollar during the March quarter and has now posted four consecutive weekly losses, including a roughly 1 percent drop last week.
Despite opening stronger after the Reserve Bank of India tightened rules on banks’ currency exposure, the rupee reversed course and fell sharply during the session, dropping about 160 paise from its opening level.
The RBI on Friday directed banks to limit their net open rupee positions in the onshore deliverable market to $100 million by the end of each business day starting April 10. Estimates suggest such positions currently range between $25 billion and $50 billion.
Analysts said the move is intended to curb speculative activity and stabilize the currency, though it added to short-term volatility.
At the same time, a surge in global crude oil prices — driven by escalating tensions in West Asia — has intensified pressure on India’s currency and financial markets.
Brent crude futures jumped 3 percent to an intraday high of $116.70 per barrel, nearing a 52-week high, while U.S. benchmark West Texas Intermediate rose more than 3 percent to exceed $103 per barrel.
Higher oil prices are a key concern for India, a major importer of crude, as they widen the trade deficit and fuel inflation.
The broader market reflected the strain, with Indian equities on track for their worst monthly decline since March 2020 and government bonds heading toward their weakest fiscal-year performance since 2023.
On Monday, the benchmark Sensex fell 1,635.67 points, or 2.2 percent, to close at 71,947.55, while the Nifty dropped 488.20 points, or 2.14 percent, to settle at 22,331.40.
Foreign institutional investors remained net sellers, offloading equities worth ₹4,367.30 crore on Friday, according to exchange data.
The rupee has now fallen more than 4 percent in March alone, underscoring the impact of geopolitical tensions and rising commodity prices on India’s currency and markets. (Source: IANS)
