India, April 27 -- The main cause of the Rupee's decline is the rapid rise in global oil prices. Brent crude jumped 2.05% in a single day due to concerns about a supply shortage after the Strait of Hormuz was closed. For India, which relies on imports for over 85% of its crude, this is a disastrous situation.

Statistically, every $10 rise in oil prices adds nearly $15 billion to India's annual import costs. With oil now priced over $20 higher than the early 2025 average, Indian oil companies are urgently seeking dollars. This huge outflow of money to pay for energy has drastically reduced the Rupee's value, pushing the USD/INR exchange rate from the mid-86s into the fluctuating 94.20-94.30 range.

The Reserve Bank of India (RBI) is in ...