The Indian rupee closed nearly unchanged on Thursday, hovering near its weakest level in two months, with support from likely central bank intervention countering pressure from oil prices' rally towards $100 per barrel.The rupee closed at 96.5725 per dollar, little changed from its close at 96.5650 the previous session.State-run banks were ‌spotted offering ⁠dollars, most ⁠likely on behalf of the Reserve Bank of India, traders said.Brent jumped 4% to ​over $98 a barrel, putting the psychological $100 threshold in striking distance, after Yemen's Houthis said ​they had struck two Saudi oil tankers, heightening fears that global oil supply disruption could spread beyond the Strait of Hormuz. [O/R]Elevated oil prices present a key risk for India as they threaten ⁠to lift ‌inflation, slow growth and widen the current account deficit.Although ​Brent prices ​had dipped to near $70 per barrel last month, renewed ⁠hostilities in the Middle East have sparked a renewed ​surge and prompted investors to reload bearish wagers on ​the rupee.Short positions on the Indian rupee have risen to an over one-month peak, per a Reuters poll."Geopolitical tensions and the resulting spike in oil prices have led to a recent unwinding of long INR positions. INR may remain exposed to swings in oil prices and risk ‌sentiment," analysts at BofA Global Research said in a note."Apart from widening the (current account) deficit, the stagflationary impact of higher ​oil prices ​leads to portfolio ⁠outflows from both equity and debt markets."India's benchmark stock index Nifty 50 fel 0.5%, declining for the fourth consecutive session, while government bonds were on ​the backfoot as well, with the yield on the benchmark 10-year note fleetingly touching a one-month peak.Elsewhere, traders were bracing for a hawkish European Central Bank meeting later in the day, with European shares and Wall Street futures in the red despite gains for most equity markets in Asia.