RBI intervenes as rupee drops past 95 on oil price jump
The RBI likely sold dollars after the rupee fell past 95. Stalled U.S.-Iran talks and PM Modi's call to conserve foreign exchange hit Indian markets.
The Reserve Bank of India likely intervened in currency markets Monday after the rupee fell 0.75% to 95.1850 per dollar. This decline followed stalled peace talks between the United States and Iran and domestic calls for foreign exchange conservation. For investors, the breach of the 95-level signals intensifying pressure on Indian macro stability as energy costs climb.
### Energy Deadlock Drives Market Selloff The market reaction intensified after the United States rejected a peace proposal from Iran on Sunday, stalling efforts to end the regional conflict. Brent oil futures rose 4% to $105.7 a barrel during the Asian morning. Higher energy prices threaten to widen the current account deficit for India, which imports the majority of its fuel needs.
