Indian Rupee Falls Below Rs 91 per Dollar Amid Geopolitical Tensions

On March 2, the Indian rupee depreciated by over 20 paise to breach the Rs 91 per dollar mark, driven by escalating geopolitical tensions in the Middle East. The Brent crude price spiked beyond $76 per barrel, dampening investor sentiment globally.

Market Analysis

The Indian rupee was trading at Rs 91.25 per dollar, a decline from Rs 90.98 in the previous session. The recent US-Israel joint attack on Iran has heightened global market uncertainty, with Brent crude prices under close scrutiny. Elevated oil prices pose a significant risk to the Indian rupee, as they will increase the country's import bill and widen the current account deficit.

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Technical Outlook

According to Amit Pabari, managing director at CR Forex Advisors, the 90.80–91.00 zone has become a critical support level. If the Indian rupee holds within this range, the probability of a move towards 91.80–92.00 is high, at approximately 90% under current market conditions.

Reserve Bank of India (RBI) Intervention

Traders are closely monitoring the RBI for any potential intervention to protect the Rs 92 per dollar level. The RBI has been selling the US dollar to prevent the Indian rupee from falling beyond the Rs 91 mark in previous trading sessions.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline