Indian rupee under pressure with Brent near $100 testing RBI defence

Indian rupee under renewed pressure as Brent crude trades near $100 a barrel, testing the Reserve Bank of India's ability to cushion the currency. The rupee is expected to open around 94.84 per dollar, with losses seen extending from the previous session as oil prices stay firm. A sustained rise in crude oil increases India's import bill and can widen the current account deficit, lifting demand for dollars and weighing on the rupee. Investors also monitor domestic factors such as inflation data, growth signals, and policy expectations that influence RBI's strategy. Traders expect the central bank to defend the rupee if it moves toward stronger losses, using conventional FX intervention tools and communications to calm markets. The broader mood remains tied to global energy prices and risk appetite, with geopolitical developments and global growth concerns contributing to volatility. While the RBI has a history of stepping in to curb sharp moves when oil climbs, a prolonged period of oil near the $100 level could complicate the central bank's balancing act between currency stabilization and supporting domestic growth. Officials cautioned that if oil remains near current levels, additional volatility could follow in the weeks ahead. Analysts say any sustained escalation in oil could keep the rupee on the back foot, even as domestic financial conditions remain supportive for now.