Rupee Extends Decline as Energy Price Surge Fuels Inflation Fears

Authored By HDFC SKY | Last Modified: Mar 4, 2026 05:33 PM IST

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The Indian rupee recorded its steepest two-session decline since May 2025, as soaring energy prices intensified fears of persistent inflation and a widening trade deficit. This prevailing risk-off sentiment, coupled with high energy costs, is expected to keep the currency under pressure in the near term. Investors are closely monitoring the longevity of the Middle East conflict, as a prolonged standoff would likely drive up the import cost of energy and precious metal while hindering export growth.

Spot USDINR faces immediate resistance at 92.60, while key support is firmly established at 91.80.

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