Rupee falls 6 paise to 91.70 as Middle East tensions shake markets

The Indian rupee stayed range-bound throughout Friday’s session and ended 6 paise lower at 91.70 against the US dollar , resisting immediate pressure from inflated crude prices and suspected intervention by the Reserve Bank of India. The currency opened at 91.64 and moved between an intraday high of 91.54 and a low of 91.78.

Market experts said heavy selling in domestic equities and the withdrawal of foreign funds added pressure on the rupee, while its depreciation was partially contained after the US administration allowed Indian refiners to buy Russian oil for 30 days . Treasury Secretary Scott Bessent called this a temporary measure to ease pressure on global energy flows amid ongoing conflict in West Asia.

The Sensex fell 1,097 points to 78,918.90, and the Nifty declined 315 points to 24,450.45. Foreign institutional investors sold equities worth Rs 3,752 crore on Thursday. Meanwhile, Brent crude climbed 2.38% to USD 87.44 per barrel, while the dollar index traded slightly lower at 99.20.

In recent weeks, the rupee has shown a weakening trend , sliding from around ₹89.85 at the end of 2025 to breach ₹92 in early March, marking a more than 2% depreciation so far this year . The ongoing Iran–Israel/West Asia conflict has amplified pressure on the rupee through rising oil prices, disruption fears around the Strait of Hormuz, and “safe-haven” flows into the US dollar.

The RBI has intervened aggressively , deploying an estimated $12 billion across spot, forward, futures, and NDF markets to curb extreme volatility. Analysts caution that while these measures stabilize the rupee in the short term, continued geopolitical tension and elevated oil prices could push the currency to 92.50 or beyond , widening India’s trade deficit and raising inflationary risks.

Investors and policymakers are closely watching the rupee’s movement, as any escalation in West Asia or unexpected crude price surges could intensify pressure on India’s external sector in the coming weeks.