RBI intervention blunts oil surge, shores up rupee

State-run banks sold dollars on behalf of the Reserve Bank of India at market open, pulling the rupee back to 96.50 per dollar from an intraday low of 96.80 after Brent crude jumped about 7 percent above 100 dollars per barrel on escalating Middle East tensions. Traders expect USDINR to move beyond 97.00 with 97.50 likely in the near term, noting that India's near 90 percent crude import dependence makes the rupee vulnerable to oil shocks. Economists expect the RBI to keep policy rates unchanged in August, while Indian shares declined tracking Asian peers after the US imposed a 10 percent tariff on Indian goods.