Rupee Rally Stalls on Rising Oil Prices, Dollar Demand

The Indian rupee hovered around 94.8 per dollar, easing slightly from multi-week highs as rising oil prices and a global flight to safety weighed on the currency, while persistent dollar demand threatened to limit further gains. Brent crude climbed to nearly USD 115 a barrel amid concerns over supply disruptions following Houthi attacks on Saudi Arabia, raising India’s import costs and potentially spurring further hedging by importers. Meanwhile, the rupee’s eight-session rally ended on Thursday as the currency reversed from a more than six-week high near 94.30. Although the RBI’s recent foreign-exchange measures have curbed dollar demand and provided some relief, they have not addressed underlying pressures from elevated oil prices and capital outflows.