Why is the Indian rupee at risk of hitting a new record low, and what role is Brent crude playing?

The Indian rupee is at risk of slipping past its all-time low of 96.96 per U.S. dollar because Brent crude surged above $100 a barrel — a 7% jump on Thursday — driven by supply disruptions including Houthi attacks on Saudi oil tankers in the Red Sea and strained trade through the Strait of Hormuz; since India is the world's third-largest oil importer, this sharp rise in crude prices intensifies economic pressure on the currency, reversing recent gains made when oil had fallen near $70 a barrel and undermining optimism spurred by RBI measures to attract capital inflows.

What actions is the Reserve Bank of India taking to support the rupee amid rising oil prices?

The Reserve Bank of India (RBI) has been intervening regularly in the foreign exchange market to cushion the rupee against oil-driven pressures, and bankers say these interventions have helped moderate the pace of the rupee’s decline and prevent deeper losses; the central bank is expected to remain active in Friday’s trading session, with markets watching for possible intervention before or shortly after the local market opens to prevent the rupee from sliding to fresh record lows.

Indian Rupee on Brink of Record Low After Crude Surges Past $100; RBI Watched

Jul 23, 2026

Brent crude surged past $100 amid supply concerns, pushing the Indian rupee toward record lows. The Reserve Bank of India is monitoring the situation and likely to intervene to stabilize the currency against oil-driven pressures.

reuters

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