Indian Rupee Nears 97 per Dollar as Iran War Fuels Oil Shock and Outflows

4 articles · Updated · Reuters · May 29

The rupee briefly approached 97 per dollar on May 22, a record low that has intensified pressure on Indian policymakers ahead of the RBI's June 5 decision.
India's heavy dependence on imported oil has left the currency exposed to the Iran war, with higher energy costs driving capital outflows and weakening the rupee.
Reuters reported apparent central bank intervention helped steady markets, even as three sources said the RBI is not rushing to raise rates to defend the currency.
Rate expectations remain split: some major banks now see a June hike, while traders are evenly divided between no change and tighter policy.
The rupee's slide is part of a broader market focus on the economic fallout from the Middle East conflict, including inflation risks in Europe and pressure on global growth.

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