The Indian rupee opened slightly lower on March 6, reflecting renewed pressure from rising global oil prices and persistent geopolitical tensions in West Asia. The local currency began trading at ₹91.65 per US dollar, slipping 5 paise from the previous session’s close of ₹91.60.

While the decline appears modest on the surface, the move underscores the fragile sentiment in currency markets where geopolitical developments and commodity price movements are closely intertwined. A sharp rise in crude oil prices following escalating conflict between the United States and Iran has amplified concerns over energy supply disruptions, creating fresh headwinds for oil-importing economies such as India.

The rupee’s dip comes just a day after it staged a sharp rebound of more than 50 paise from record lows. Market participants attributed that recovery partly to suspected intervention by the Reserve Bank of India, which has historically stepped into the foreign exchange market during periods of extreme volatility to smooth excessive currency movements.

Despite the previous day’s recovery, traders remain cautious about the durability of the rupee’s gains. Brent crude prices continued to remain elevated, trading around $84.46 per barrel, reflecting fears that geopolitical tensions could tighten global supply conditions. Rising crude prices typically widen India’s import bill and can increase demand for dollars from domestic oil companies, which in turn puts downward pressure on the local currency.

The currency’s performance is also being shaped by a broader shift in global capital flows. Heightened geopolitical risks have pushed investors toward traditional safe-haven assets, particularly the US dollar and gold. This risk-off sentiment has weighed on emerging market currencies, many of which tend to face capital outflows during periods of global uncertainty.