The domestic currency opened at 92.28 per dollar, down 24 paise from its previous close of 92.04 on Wednesday (March 11).
The pressure on the rupee comes as global crude oil prices climbed after reports that Iranian explosive-laden boats struck two fuel oil tankers, reviving concerns about supply disruptions amid the ongoing conflict involving Iran.
Benchmark Brent crude rose 7.3% to $98.60 a barrel, as the tanker attack offset earlier relief after the International Energy Agency (IEA) agreed to release a record 400 million barrels from strategic reserves to help cool prices.
Persistent tensions in the Persian Gulf have kept oil markets volatile, with crude swinging in a broad $81–$120 per barrel range this week as headlines around the conflict shift sentiment rapidly.
Higher oil prices typically pressure the rupee as India is a major crude importer and rising energy costs widen the country’s trade deficit.“With oil swinging like this, the rupee will remain vulnerable,” a currency trader at a private bank said, adding that market participants expect the central bank to smooth volatility.
Traders said the Reserve Bank of India (RBI) has been actively intervening in the foreign exchange market in recent sessions, selling dollars to curb pressure from the volatile oil prices. Market participants expect the central bank to continue stepping in to keep the rupee’s decline orderly rather than prevent it entirely.
–With Reuters inputs
