Why is the Indian rupee weakening despite the Reserve Bank of India's intervention?

The rupee is weakening due to persistently high oil prices—Brent crude rose to $109.40 a barrel—and heavy dollar buying by oil refiners, with little offsetting supply and only selective RBI intervention; the central bank supplies dollars up to specific levels rather than defending the currency aggressively, while oil-linked flows and hedging-related dollar demand continue eroding earlier gains from RBI measures.

What role is the Strait of Hormuz playing in current oil price pressures affecting the rupee?

Oil flows through the Strait of Hormuz have yet to resume two months after the U.S. and Israel attacked Iran, and analysts view this lack of shipments through the key transit route as a major obstacle to cooling oil prices—contributing directly to Brent crude’s rise and sustained pressure on the rupee.

Rupee faces pressure from stubbornly high oil, weak Asian peers

Apr 27, 2026

The Indian rupee weakened against the dollar amid rising oil prices near $109 per barrel and geopolitical tensions disrupting Strait of Hormuz flows. Traders cite heavy dollar buying by oil refiners and limited RBI intervention as key factors pressuring the currency.

reuters

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Rupee faces pressure from stubbornly high oil, weak Asian peers