India, March 4 -- The rupee slipped past the 92/Dollar mark for the first time today, as a surge in crude oil prices-stoked by the blockade of Strait of Hormuz amid an escalating Iran war-sparked inflation fears in India's "goldilocks" economy.

The local currency depreciated as much as 0.9%-its most severe intraday decline in 10 months-to hit 92.3050 against the dollar. The 10-year bond yield climbed five basis points to 6.73%, while the benchmark NSE Nifty 50 Index tumbled 2.3%.

The Reserve Bank of India moved swiftly to contain the market fallout. According to people familiar with the trading desk flows, RBI intervened by selling dollars to support the rupee shortly after it breached the 92-per-dollar level.

The core driver of the ma...