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The rupee stayed range-bound passim the league connected Friday and ended 6 paise little astatine 91.70 (provisional) against the U.S. dollar, resisting unit from inflated crude lipid prices and suspected RBI intervention.
According to forex experts, dense selling successful home equities and withdrawal of overseas funds further dragged the rupee down.
However, they said the depreciation was capped pursuing the U.S. administration's determination to let Indian refiners to acquisition Russian lipid for 30 days, a determination to easiness unit connected planetary vigor flows amid the ongoing warfare successful West Asia.
Treasury Secretary Scott Bessent connected Thursday (March 5, 2026) said, "This stop-gap measurement volition alleviate unit caused by Iran's effort to instrumentality planetary vigor hostage".
At the interbank overseas speech market, the rupee opened astatine its erstwhile session's closing level of 91.64 against the greenback and moved successful a constrictive scope betwixt an intra-day precocious of 91.54 and a debased of 91.78 during the session.
At the end, the rupee settled astatine 91.70 (provisional) against the U.S. dollar, losing 6 paise from its erstwhile closing level.
The Indian currency recovered 41 paise to settee astatine 91.64 against the dollar connected Thursday (March 5, 2026) aft losing 97 paise successful the preceding 2 sessions.
According to analysts, respective factors, including shipping disruptions successful the Strait of Hormuz, triggered by the warfare involving the U.S., Iran and Israel, person added unit to the Indian currency.
Moody's Ratings connected Friday (March 6, 2026) said India could look unit connected the rupee, higher ostentation and a widening existent relationship shortage if the escalating Middle East struggle spikes vigor prices and disrupts supplies, fixed its dense dependence connected crude and LNG imports from the region.
"Costly vigor imports would weaken the rupee, rise inflation, worsen the existent relationship equilibrium and complicate monetary argumentation arsenic good arsenic fiscal absorption if they pb to expanded subsidies to assistance offset the economical shock," the standing bureau said successful a note.
Dhiraj Nim, FX strategist astatine ANZ Research, said the "rupee could breach the 92.50 level against the dollar if lipid prices ascent sharply, though heavier RBI involution would apt support the marketplace choppy".
ANZ has projected the rupee to interaction 93 a dollar by the year-end, but it said: "the level could beryllium reached earlier if geopolitical tensions persist and support lipid prices elevated".
Suggesting RBI's involution successful the spot market, Nim said the cardinal slope whitethorn besides request to measurement up enactment successful the offshore non-deliverable guardant (NDF) market, wherever planetary shocks tin power sentiment and spill implicit into the onshore market.
Kunal Sodhani, caput of treasury astatine Shinhan Bank, said the rupee could commercialized broadly successful the 91.40-93.00 scope successful the adjacent word nether the existent planetary environment.
Meanwhile, the dollar index, which gauges the greenback's spot against a handbasket of six currencies, was trading 0.10 per cent little astatine 99.20.
Brent crude, the planetary lipid benchmark, was higher by 2.38% astatine $87.44 per tube successful futures trade.
On the home equity marketplace front, the Sensex logged a steep nonaccomplishment of 1,097.00 points oregon 1.375 to settee astatine 78,918.90, portion Nifty descended 315.45 points oregon 1.27% to 24,450.45.
Foreign organization investors sold equities worthy ₹3,752.52 crore connected a nett ground connected Thursday (March 5, 2026), according to speech data.
