Monday, March 2 — The Indian rupee weakened sharply in early trade, slipping more than 20 paise to Rs 91.25 against the US dollar, compared to its previous close of Rs 90.98. The fall comes amid escalating geopolitical tensions involving the US, Israel and Iran, which have triggered a surge in global crude oil prices.
Crude surge weighs on rupee
Crude oil prices jumped toward $76 per barrel after the latest developments in West Asia intensified fears of supply disruptions. Reports of attacks over the weekend and concerns around the Strait of Hormuz — a key global oil transit route — have heightened volatility in energy markets.
For India, higher oil prices are a significant negative. The country imports nearly 89% of its crude oil requirements, making the rupee sensitive to spikes in global energy costs. Rising crude increases India’s import bill, widens the current account deficit and puts downward pressure on the domestic currency.
Technical levels in focus
According to market participants, the 90.80–91.00 zone is now seen as a key support area for the rupee. A sustained breach above this level could open the door for a move toward 91.80–92, depending on global risk sentiment and crude price trends.
RBI action awaited
Traders are closely monitoring the Reserve Bank of India (RBI) for possible intervention. The central bank was reportedly active in the forex market in previous sessions to prevent the rupee from sliding beyond the Rs 91 level. Any further weakness may prompt additional action to curb excessive volatility.
With crude prices and geopolitical headlines driving sentiment, the rupee is likely to remain sensitive to developments in the coming sessions.
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