Overview
- The Indian rupee, which closed at 93.48 on Tuesday, slid to about 93.75 in early Wednesday trade as higher crude prices and ceasefire uncertainty lifted demand for dollars.
- India’s central bank on Monday eased its April 1 curbs by letting banks offer offshore rupee forwards again, while keeping a $100 million net open cap to curb speculative positions.
- Brent near $98 to $99 and a dollar index around 98 have raised dollar costs for India, with shipping stops at the Strait of Hormuz swinging oil on a route that carries about one‑fifth of global petroleum.
- Pakistan’s rupee edged to 278.87 by Wednesday after the central bank said Tuesday it received a $1 billion Saudi deposit, following a $2 billion tranche last week and a $500 million Eurobond sale even as recent repayments trimmed reserves.
- Traders are watching the ceasefire timeline and the RBI cap for cues on whether USD/INR holds the 92–94 band flagged by analysts, with pricier fuel and imported goods likely if oil stays elevated and the dollar remains firm.