IGI Logo

Below Quote on Quote on Rupee Movement Amid Global Developments by Abhishek Bisen Kotak Mahindra AMC

The rupee breaching the 93-mark against the US dollar reflects a sharp rise in external vulnerabilities amid heightened geopolitical tensions. Disruption to global energy supplies following the escalation in the Middle East has pushed up Brent crude oil price and is currently close to ~ US$ 108 (peaked at US$119 on March 19, 2026) per barrel, adversely impacting India’s terms of trade. Since the onset of the US–Iran conflict, the rupee has depreciated nearly 2%, driven by a stronger dollar, risk-off sentiment, and higher import costs. Sustained elevation in oil prices could pose challenges to India’s growth–inflation dynamics leading to pressures in the current account deficit and complicating monetary policy trade-offs. While RBI intervention and India’s strong FX reserves may help curb excessive volatility, the currency is likely to remain under pressure as long as geopolitical uncertainties persist and energy markets remain tight.  However, since the war began INR depreciated ~ 2.7%  which is in line with other emerging peers.

Above views are of the author and not of the website kindly read disclaimer