Indian Rupee Weakens as Oil Prices Rise Amid Middle East Tensions
INR losses momentum as oil prices rebound amid war uncertainty
Business Standard
Image: Business Standard
The Indian rupee (INR) opened at ₹92.63 per dollar and fell to a low of ₹92.71 due to rising oil prices and uncertainty over a U.S.-Iran ceasefire. Despite this, the World Bank has upgraded India's GDP growth forecast for FY27 to 6.6%, maintaining its position as the fastest-growing major economy.
- 01The Indian rupee opened at ₹92.63 per dollar and hit a low of ₹92.71.
- 02Oil prices are rebounding amid uncertainty over U.S.-Iran ceasefire terms.
- 03Asian markets are mostly lower despite positive cues from Wall Street.
- 04The World Bank upgraded India's GDP growth forecast for FY27 to 6.6%.
- 05India continues to be the fastest-growing major economy despite a slight growth moderation.
Advertisement
In-Article Ad
The Indian rupee (INR) lost momentum in early trading on Thursday, opening at ₹92.63 per dollar and dipping to a low of ₹92.71. This decline is attributed to rising oil prices and uncertainty surrounding the U.S.-Iran ceasefire. Local equities also opened lower, influenced by a sharp rise in oil prices and geopolitical tensions in the Middle East, particularly following renewed Israeli strikes on Lebanon. Despite these challenges, the World Bank has upgraded India's GDP growth forecast for the fiscal year 2026-27 (FY27) to 6.6%, an increase from the previous estimate of 6.3%. While this represents a slight moderation from the 7.6% growth expected in FY26, India remains the fastest-growing major economy globally, as noted in the World Bank's latest South Asia Economic Update.
Advertisement
In-Article Ad
The weakening of the Indian rupee may lead to increased import costs, particularly for oil, which could affect fuel prices and overall inflation in the country.
Advertisement
In-Article Ad
Reader Poll
How do you think the rising oil prices will affect the Indian economy?
Connecting to poll...
More about World Bank
World Bank Raises India's GDP Growth Forecast for FY27 to 6.6%
Business Standard • Apr 9, 2026
World Bank Projects India's Growth to Slow to 6.6% in FY27 Amid West Asia Conflict
Mint • Apr 8, 2026
World Bank Increases India's FY27 Growth Forecast to 6.6% Amid Global Challenges
Business Standard • Apr 8, 2026
Read the original article
Visit the source for the complete story.