Rupee Falls Despite RBI Intervention: Why Dollar Demand Surged

• The dollar-rupee pair defied expectations, with the dollar strengthening after an initial weaker opening.
• High demand for dollars from oil companies to purchase Russian crude before a US waiver expires on April 5.
• Overall dollar demand surged due to rising crude prices ($115/bbl) and foreign funds pulling out $500 million daily from stocks.
• RBI's forced dollar sales by banks coincided with a stronger dollar index and weakening Asian currencies.
• Market watchers suggest RBI might have aimed to use banks' dollars to meet demand, preserving its own reserves amidst global bearishness.