Rupee could hit 100 per dollar if Iran war persists, say analysts

• India’s rupee may weaken to a record 100 per dollar or beyond if the Iran war drags on, warn strategists.
• Elevated oil prices are expected to accelerate the rupee’s decline by worsening inflation and the current-account deficit.
• The Reserve Bank of India (RBI) capped banks’ end-of-day positions in the onshore currency market at $100 million, but the rupee still hit a fresh low of 95.125.
• Analysts suggest 100 per dollar is a credible stress scenario if current conditions persist, with the RBI's measures offering only temporary relief.
• Uncertainty over the war’s duration has led to $12 billion in outflows from Indian equities in March, the steepest monthly outflow on record.