The Indian rupee fell to around 94.61 per dollar, retreating from more than two-month highs as rising oil prices and increased importer hedging demand pressured the currency. The rupee’s recovery has lost momentum as companies lock in dollar requirements amid concerns over costlier crude. Brent crude neared $97 a barrel as escalating US-Iran tensions and threats to Gulf energy infrastructure raised supply disruption risks. Meanwhile, the RBI remained active after selling at least $8 billion last week, with estimates as high as $15 billion. Its role has shifted toward cushioning pressure from higher oil prices and US Treasury yields rather than driving further appreciation. Persistent depreciation concerns have kept hedging flows tilted toward dollars, with importers increasing forward purchases and exporters holding back dollar sales. Policy-driven dollar inflows have given the RBI greater room to intervene, while foreign exchange reserves recently hit a record $740.8 billion.