The Indian rupee depreciated to a two-month low of 86.20 against the U.S. dollar on June 13, 2025, following a sharp increase in global oil prices triggered by geopolitical unrest in the Middle East. In response, the Reserve Bank of India (RBI) likely intervened by selling U.S. dollars through state-run banks to stabilize the currency, which later settled around 86.05. reuters.com

India’s heavy reliance on oil imports, accounting for 80-85% of its crude oil needs, makes the economy particularly vulnerable to such price shocks. The surge in oil prices poses risks to the country’s trade balance, inflation, and overall economic stability.