Why oil keeps hitting India's rupee
India buys most of its oil abroad, so every Gulf headline is also a household-budget story.
By the Dispatch desk · 25 Oct 2026 · 4 min read
Draft: AI-assisted summary of the reports below, pending editor review. Facts are as reported on the dates shown and may have changed.
Brent crude crossed $102 a barrel on 8 October 2026, the same day the Reserve Bank of India's 25 basis point rate rise, to 5.5 per cent, was weighing on Indian markets, according to Equentis. The Free Press Journal noted that dearer oil can raise India's import bill, weaken the rupee and widen the current account deficit.
The rupee
The rupee has hit record lows near 95 to the dollar this year as oil rose. NewsBytes reported that bankers estimated the RBI sold at least $8 billion in one week to keep the currency steady.
The warning
A Union Bank report published in April warned that if the disruption lasted, Brent could stay in the $100 to $110 range and push inflation above 4 per cent.
Our view
Oil prices have swung widely this year, so check today's price before drawing conclusions. The structural point holds: a country that imports most of its crude feels every conflict headline in its currency and its fuel prices.