The rupee slipped to 95.89 against the dollar on Monday as rising crude prices put pressure on the currency, with the Reserve Bank of India seen stepping in to defend the 96 level.

Traders told Reuters the central bank likely intervened after stalled US-Iran talks pushed Brent crude 2.5 per cent higher to about $107 a barrel. US President Donald Trump rejected an Iranian proposal to end the conflict and reopen the Strait of Hormuz, raising fears of long supply disruptions.

The 96-per-dollar mark has become a key level, with the RBI repeatedly entering the market over the past two weeks to stop a sustained fall. The rupee had closed at 95.81 on Friday.

A stronger dollar and a US 10-year Treasury yield of 5.2 per cent, the highest in nearly two decades, added to the pressure. India’s foreign exchange reserves fell $15 billion in the week to September 18, likely reflecting the intervention.

Why it matters: India imports nearly 90 per cent of its crude oil, so high oil prices quickly feed into inflation and household costs.