Indian Rupee Hits 8-week Low

The Indian rupee climbed back above 97 per USD, attempting to recover from record lows, after the Reserve Bank of India reportedly intervened to support the currency amid pressure from soaring oil prices. According to Bloomberg, the RBI sold small amounts of dollars in the onshore market on Wednesday after the rupee repeatedly hit all-time lows in recent sessions. The central bank faces mounting pressure to stabilize the rupee, which has lost over 7% this year, making it Asia’s worst-performing currency. As a net energy importer, India is grappling with a widening trade deficit and rising fuel subsidy costs due to surging oil prices from the war. Adding to the strain, global investors have pulled a record $23 billion from Indian stocks this year.

The Indian Rupee touched 96.64 against the USD, the lowest since March 2026. Over the past 4 weeks, US Dollar Indian Rupee gained 3.75%, and in the last 12 months, it increased 12.92%.

The Indian rupee hovered around 96.9 per dollar, hitting fresh record lows under sustained pressure from a stronger dollar and surging Treasury yields. It extended its losing streak to eight consecutive sessions, marking multiple record lows over the past week. Pressure has intensified as US Treasury yields rose sharply amid a global bond selloff, driven by expectations of a Federal Reserve rate hike this year. The 10-year yield has jumped over 20 basis points in four sessions, while the 30-year yield climbed to its highest since 2007, strengthening the dollar across markets. At the same time, geopolitical uncertainty and stalled US–Iran negotiations have kept oil prices elevated, with Brent crude holding near $111 per barrel. Domestically, pressure on the rupee intensified after India raised petrol and diesel prices by about 0.9 INR per litre for the second time in a week, fuelling concerns over inflation and higher import costs.