Rupee weakens amid rising crude prices, RBI likely steps in to curb volatility
Published on 02/03/2026 11:35 AM
Rupee weakens amid rising crude prices, RBI likely steps in to curb volatilityIndian rupee fell to 91.38 per US dollar amid rising crude prices, Middle East tensions, and a stronger dollar. RBI intervened mildly.By Anshul March 2, 2026, 11:35:27 AM IST (Updated)2 Min ReadThe Indian rupee weakened on Monday (March 2), trading at 91.38 per US dollar, down nearly 0.4% from previous levels, as rising crude oil prices, a stronger dollar, and heightened global volatility following weekend Middle East tensions put pressure on the currency.
However, according to a Reuters report, Reserve Bank of India (RBI) likely intervened in the foreign exchange market, selling dollars through state-run banks to curb volatility.
Market participants described the central bank’s activity as mild and aimed at stabilising the rupee rather than maintaining it at a specific level. The RBI was also reportedly active in the non-deliverable forwards market, the report said.
The rupee had opened at 91.23 and touched 91.4250 in early trade. Analysts said a combination of crude price surge, negative equity sentiment, and foreign fund outflows contributed to the decline.
On Friday (February 27), the rupee had settled at 91.08 against the dollar.
Brent crude futures rose 3.9% to $76.78 a barrel after US and Israeli forces struck targets across Iran, including missile sites and warships, following the killing of Iran’s Supreme Leader Ayatollah Ali Khamenei.
Rising oil prices raise concerns for India, which imports around 85% of its fuel requirements, potentially increasing the country’s import bill.
India’s benchmark equity markets also fell, with the BSE Sensex down 691 points (0.85%) to 80,595.72 and the Nifty 50 down 241 points (0.96%) to 24,937.70 in early trade. Foreign institutional investors offloaded equities worth ₹7,536 crore on Friday, according to exchange data.
The dollar index, measuring the greenback’s strength against a basket of six currencies, was up 0.22% at 97.78. Analysts noted that portfolio flows linked to global equity index rebalancing may also have influenced rupee movements.
-With agencies inputs
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