The Reserve Bank of India, in its annual report, said the rupee weakened nearly 10% in FY26 due to trade uncertainties, a wider deficit, the Middle East conflict and FII outflows. RBI intervened in forex markets and expanded measures such as SRVAs and local currency arrangements to stabilise the currency and reduce volatility.

RBI recorded its biggest forex intervention in FY26, selling a record $53 billion to support the rupee amid tariff fears and capital outflows.

Amid the Middle East crisis and the US-Iran conflict, the Indian economy is in focus for the possible fallout from the war and rising global crude oil prices that is now hitting…