India Rupee Gains After Hitting Record Low As RBI Steps In To Stabilise Markets
The Indian rupee recovers from a record low as the Reserve Bank of India appears to intervene to stabilise onshore and offshore markets. Brent crude rises on Middle East tensions, underscoring the currency-oil link for India amid global risk sentiment.
Business
The Indian rupee opened stronger on 5 March, recovering more than 50 paise against the dollar after hitting a record low in the previous session, as traders said the Reserve Bank of India likely stepped in to calm markets.
At around 10:05 IST, the rupee traded near Rs 91.57 per dollar, compared with the all-time low of Rs 92.17 touched on 4 March, when the currency had dropped about 70 paise in one of its sharpest recent intraday declines.
Indian rupee moves and RBI action amid global oil shock
Currency dealers said the Reserve Bank of India probably intervened in both the onshore spot market and the offshore non-deliverable forwards segment, seeking to limit further weakness in the Indian rupee as global risk sentiment stayed fragile.
The pressure on the Indian rupee comes as Brent crude trades higher, with the benchmark around $83.61 per barrel. The Strait of Hormuz, a key route for global oil shipments, stays closed while the United States-Israel and Iran conflict continues into its sixth day.
Fears that the Strait of Hormuz may not reopen soon have lifted Brent prices by more than 10 percent since hostilities flared over the weekend, adding to worries for energy importers and feeding directly into currency market nerves.
“Although recent chatter around de-escalation may offer some short-term relief to the rupee, the broader pressures remain firmly in place. Technically, the Rs 91.20–Rs 91.50 zone is emerging as strong support for the USD/INR pair,” Amit Pabari, MD at CR Forex Advisors, said.
For India, which depends on overseas supplies for almost 85 percent of fuel demand, sustained high Brent prices risk swelling the import bill and widening the current account deficit, a mix that tends to weigh on the Indian rupee during extended periods of stress.
The latest moves in the Indian rupee, the reported Reserve Bank of India support, and the jump in Brent crude prices underline how closely energy markets and currency trends are linked for India, as policymakers and traders track the US-Iran war and related developments.
| Indicator | Level | Date / Context |
|---|---|---|
| Rupee opening level | Rs 91.57 per dollar | 5 March |
| Record low | Rs 92.17 per dollar | Session on 4 March |
| Intraday fall | About 70 paise | 4 March |
| Brent crude price | $83.61 per barrel | Amid Strait of Hormuz closure |
| Oil price move | More than 10 percent rise | Since war began over weekend |
The article is written by Archishma Iyer.