Rupee Weakens Amid Geopolitical Tensions and Firm Dollar Demand

Authored By HDFC SKY | Last Modified: Mar 11, 2026 05:20 PM IST

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The Indian rupee has depreciated against the US dollar, even as regional currencies show a mixed performance. Over the past two weeks, intensified geopolitical tensions in West Asia have triggered risk-averse sentiment and pushed crude oil prices higher—both of which have weighed heavily on the rupee. Tight dollar liquidity has further exacerbated the decline, driven by capital outflows from domestic equity and debt markets. While the central bank’s dollar supplies have helped limit losses, firm demand from importers continues to drag the currency lower.

In the near term, spot USDINR finds immediate support at 91.60, with key resistance seen at 92.40.

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