Indian rupee snaps eight-day rally as oil climbs to highest since May

Business Recorder reported that the Indian rupee ended an eight-session advance on Thursday, falling 0.4% to 94.8175 per dollar. Brent crude rose to $112.40 a barrel, its highest level since May, as concerns over Middle East conflict weighed on markets.

The rupee had earlier reached its strongest point in more than six weeks, supported by foreign subscriptions to Jio Platforms’ IPO and the Reserve Bank of India’s defensive steps. Those gains later reversed amid rising oil prices and wider demand for dollars, while MSCI’s All-World index was down 0.4% and futures signalled a weak opening for US shares.

India imports nearly 90% of its crude needs, leaving the currency exposed to higher oil costs. IMF official Krishna Srinivasan urged allowing the exchange rate to move as an initial defence, while former RBI deputy governor Michael Debabrata Patra cautioned that excessive currency moves can threaten financial stability.