Indian Rupee Weakens Amid Middle East Tensions and Rising Oil Prices

The Indian rupee weakened to around 91.29 per US dollar on March 2, 2026, marking its lowest level in about a month amid escalating US-Israel-Iran tensions and rising global crude oil prices. The conflict has heightened geopolitical risks, pushing oil prices above $76 per barrel and triggering risk-off sentiment that led to foreign fund outflows and equity market declines. The Reserve Bank of India is expected to intervene to stabilize the currency, aiming to prevent a sharp fall below the psychological 92 level. India's dependence on Middle East oil imports and increased import costs due to a softer rupee raise concerns about inflation and the current account deficit.