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2026.04.0603:55:20UTC+00Rupee Slides on Energy Supply Concerns

The Indian rupee weakened to around 92.8 per dollar, retreating after a brief period of stabilization as escalating geopolitical tensions in the Middle East continued to weigh on market sentiment. President Donald Trump’s threats to target Iran’s power infrastructure have intensified concerns over regional energy security. Iran has refused to reopen the Strait of Hormuz without compensation for war-related damages and has continued strikes on neighboring energy facilities. Although talks on a possible 45-day ceasefire are ongoing, an agreement within the next 48 hours appears unlikely.

On the supportive side, the rupee’s losses have been partially contained by the Reserve Bank of India’s tighter measures to rein in speculative activity. Restrictions on forward transactions and stricter limits on banks’ foreign-exchange positions have prompted dollar selling in the onshore market. In addition, the government has moved to ease pressure on domestic industries by exempting key petrochemical imports from customs duties for three months, through June 30.

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