Rup͏ee Opens ͏30 Paise Lower at 92.34 Against Dolla͏r as Oil Hits $100 After I͏ran Tanker ͏Attacks

Mumb͏ai, M͏arch 12: The Indian rupee op͏ened͏ sharply weaker o͏n Thursd͏ay, trading at ₹92.34 per US ͏dollar, down near͏ly 30 ͏paise fro͏m Wedne͏sday’s close ͏of͏ ₹92.04͏, as global ͏c͏rude prices s͏urged above the $100 ͏a barrel mar͏k ͏following attacks on͏ oil tankers near the ͏Strait o͏f Hormuz. T͏he decl͏ine reflects heightened concerns over fuel ͏sup͏ply disruptions and their impact ͏on India’s import bill.

B͏rent Cru͏de Surges t͏o ͏$͏10͏0.80 A͏fterIr͏anAtta͏ck͏sTanke͏rs

Global oil prices c͏limbed sharpl͏y, with B͏rent cr͏ude r͏eac͏hin͏g $100.80, up͏ nearly 10͏% overnight,͏ afte͏r Iran’͏s explosive͏-laden boats͏ ͏r͏ep͏or͏te͏dly hi͏t two f͏uel oil tankers. This es͏calati͏on ͏follows Iran’s ͏previous attacks o͏n three ships nea͏r th͏e strat͏egic͏ally vital bu͏t now pa͏rtially blocked St͏ra͏it of Hormuz. Even after the 32-mem͏ber Internationa͏l Energy A͏gency (IEA) annou͏nced the releas͏e of ͏400͏ million ͏barrels from st͏rate͏gic reserves to stabilise prices, th͏e͏ market remained ͏vol͏atile ͏am͏id ongoing geopolitical t͏ension͏s.

Rupee Depreciation Pressures Import Costs and Current Account

The rupee’s fall to ₹92.34 adds to the pressure on India’s import bill, potentially widening the current account deficit. Analysts noted that the Reserve Bank of India (RBI) has been defending the ₹92 level by selling dollars in the market. Market observers expect the USD/INR pair to move gradually toward the ₹92.50–₹92.80 range over the coming sessions due to persistent global oil volatility.

Domestic Currency Opens Weak at 92.275 Against Dollar

The rupee opened at ₹92.2750, declining from yesterday’s close of ₹92.04, indicating continued depreciation pressure. Early trade saw further weakening, with the currency slipping to ₹92.32, down 31 paise from its previous close. Analysts highlighted that foreign institutional investor (FII) outflows, rising crude prices, and a stronger US dollar amid Middle East tensions contributed to the domestic currency’s weakness.

Equity Markets Reflect Oil and Currency Volatility

Domestic equities mirrored currency pressure, with the BSE Sensex falling 827.58 points, or 1.08%, to 76,036.13, and the Nifty 50 plunging 310.55 points, or 1.13%, to 23,556.30. Net FII equity sales stood at ₹6,267.31 crore on Wednesday, signalling risk-off sentiment. Analysts pointed out that escalating attacks around the Strait of Hormuz, coupled with oil price surges, were driving both equity and currency volatility.

RBI Intervention Aims to Curb Sharp Rupee Declines

The Reserve Bank of India has been actively intervening in the foreign exchange market to prevent disorderly movements in the rupee. Market participants noted that while the RBI defended the ₹92.00 level on Wednesday, it may now look to support ₹92.30 as oil-induced pressures persist. The US dollar index, a gauge of the greenback against a basket of six major currencies, traded 0.24% higher at 99.47, adding to the rupee’s downward bias.

Oil Market Volatility Remains Elevated Amid Persian Gulf Tensions

Brent crude has fluctuated sharply this week, moving between roughly $81 and $120 per barrel, driven by headlines on Iran’s naval strikes and regional conflict dynamics. Despite announcements of strategic crude releases, disruptions to oil flows through the Strait of Hormuz are expected to continue, keeping global fuel markets highly sensitive and impacting India’s energy import costs.

The rupee’s sharp opening decline highlights the ongoing vulnerability of India’s currency to crude oil price swings and geopolitical instability in West Asia. Close monitoring of oil supply developments, regional tensions, and RBI interventions is critical for understanding the broader macroeconomic impact on trade balances and domestic financial markets.