Rupee Weakens 0.033% to 92.34 Against US Dollar Amid Rising Oil Prices After Iran Tanker Attacks

Indian Rupee Weakens Amid Ongoing Global Tensions and Rising Oil Prices

On March 12, the Indian Rupee (INR) opened nearly 30 paise lower, trading at Rs 92.34, down from Rs 92.04 in the previous session. The local currency has been hovering near its record low as crude oil prices surged to a new high of $100 per barrel after Iran attacked tankers around the Strait of Hormuz, exacerbating supply disruption fears.

The volatility in oil prices has been a major concern for the INR, with Brent crude prices expected to rise, resulting in a wider current account deficit due to increased import bills. The International Energy Agency (IEA) announced on Wednesday that its 32 member countries will release 400 million barrels of crude from strategic reserves.

The Reserve Bank of India (RBI) had been actively defending the Rs 92 per dollar mark, but with the level breached, the central bank will now focus on preventing further falls to fresh record lows. Market participants remain cautious, with a weak sentiment for the INR.

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According to market analysis, the underlying bias for the USD/INR pair remains slightly upward, with the pair expected to move towards the Rs 92.50 - Rs 92.80 region in the coming sessions.