Market participants said frequent interventions by the Reserve Bank of India, including on Wednesday, have helped prevent sharper declines. A sustained rally in oil prices could significantly widen India’s current account deficit and stoke inflationary pressures, leaving the rupee more vulnerable than many of its emerging market peers. Analysts warn that as long as crude prices hover around the $100 mark, pressure on the rupee is unlikely to abate. The investment bank also expects India’s current account deficit to widen by 0.8 percentage points to 1.2 per cent of GDP. Despite currency pressures, domestic equities showed resilience.

Source: The Telegraph March 19, 2026 03:17 UTC