Why is the Indian rupee under pressure, and what role is the RBI playing to counter it?

The Indian rupee is under pressure primarily due to rising oil prices—Brent crude is nearing $90 a barrel and up 7% this week—driving increased dollar demand from importers hedging against further rupee depreciation; this oil-driven demand is offsetting positive sentiment from Reserve Bank of India (RBI) interventions, which have involved selling dollars through state-run banks at levels near 95.40 on Tuesday and 95.25–95.30 on Monday to blunt the rupee’s losses and resist a move above 95.50.

What key external factor could influence the rupee's movement later in the day, according to the report?

U.S. inflation data (CPI) due later in the day could significantly influence the rupee’s movement, as it may signal whether the Federal Reserve will raise interest rates next month—a decision markets are currently split on—and because the Fed has shifted its focus more toward inflation than the labour market, making the CPI number particularly important for global currency dynamics, including the dollar-rupee pair.