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InterGlobe Aviation, the parent of IndiGo, reported a consolidated net loss of ₹2,536.9 crore for the quarter ended 31 March 2026, compared with a profit of ₹3,067.5 crore a year earlier. Revenue from operations rose 1.3 per cent to ₹22,438.4 crore, underscoring the pressure on margins even as traffic and network scale remained broadly resilient.

Foreign exchange was the biggest drag on earnings. The airline recorded a net forex loss of about ₹4,823 crore during the quarter, reversing a gain in the same period last year. More than half of IndiGo’s cost base is linked to the US dollar, leaving the carrier exposed to currency movements through aircraft leases, maintenance, engine costs and other overseas obligations.

The March-quarter performance also reflected the impact of higher aviation turbine fuel prices, which rose sharply as geopolitical tensions disrupted crude markets. Fuel remains the single largest variable cost for airlines, and IndiGo’s low-cost model has been tested by the combination of higher oil prices, a weaker rupee and operational restrictions affecting parts of its network.

Capacity growth slowed to 3.4 per cent during the quarter, far below the pace recorded a year earlier. The carrier faced route and scheduling challenges tied to West Asia airspace disruption, while higher fuel prices made some services less attractive commercially. IndiGo and other carriers have trimmed planned domestic schedules for June and July as they reassess deployment during the summer travel period.

The result marks a sharp reversal for an airline that has benefited from strong domestic demand, high aircraft utilisation and the weakness of smaller rivals. IndiGo still controls the largest share of the country’s aviation market and operates one of the world’s biggest aircraft order books, but the quarterly loss shows that scale alone cannot fully offset external shocks.

Operationally, the airline continued to expand its network and strengthen international connectivity, including services aimed at capturing longer-haul demand from South Asia to Europe, the Gulf and Southeast Asia. Management has been pushing a broader transformation from a predominantly domestic low-cost carrier into a larger international operator with premium options on select routes.

That strategy requires higher spending, more complex aircraft deployment and deeper exposure to foreign-currency costs. Lease liabilities, engine maintenance obligations and airport charges in overseas markets are all sensitive to exchange-rate movement. The quarter therefore highlights a central challenge for IndiGo: maintaining its cost advantage while moving into markets where volatility is harder to absorb.

The airline is also evaluating a broader hedging approach for fuel and currency exposure. IndiGo has traditionally kept a limited fuel-hedging position, relying instead on operational efficiency and scale. The latest loss could accelerate a shift towards more active risk management, particularly if crude prices remain elevated and the rupee stays under pressure.

Passenger demand has not collapsed, but softer discretionary travel linked to higher fares and regional uncertainty has added pressure. Airlines have sought to pass part of the fuel-cost increase to passengers, yet fare hikes can weaken price-sensitive demand, especially in the low-cost segment. That balance is becoming more difficult as carriers deal with aircraft shortages, engine inspections and congested airports.

IndiGo’s cost structure also faced pressure from labour-related provisions and broader inflation in staff, airport and maintenance expenses. The company has been adding pilots, cabin crew and engineering capacity to support network growth, while aircraft groundings linked to engine issues continue to affect industry-wide fleet planning.

Despite the quarterly loss, the airline remains better placed than many competitors because of its fleet scale, liquidity position and extensive domestic network. Its large Airbus order book gives it long-term growth visibility, while its high-frequency metro and regional operations provide strong load-factor support. The carrier’s ability to manage unit costs will be central to restoring profitability.

The board has approved a plan to deploy up to $450 million for aircraft, engines and other aviation assets, a move aimed at giving the airline more control over key operating inputs. That investment points to a longer-term effort to reduce dependence on leased capacity and improve flexibility in fleet management.

Robert Walters Taiwan’s 15th anniversary report Reveals Structural Shift in the Local Talent Market

• Taiwan’s talent market has officially shifted from an employer-driven to a candidate-driven market, with critical skills increasingly replacing tenure and job titles as the core measure of talent value.
• AI adoption and global supply chain restructuring are accelerating salary polarisation. Professionals in semiconductors and high-tech industries are seeing salary increases of 15–20% when changing jobs, while those with AI, HPC and cross-border supply chain expertise can command increases of up to 30%.
• Career priorities are evolving beyond compensation. 54% of professionals cite learning and development opportunities as a key reason for staying with their current employer.
• By 2030, Gen Z is expected to account for 30–33% of Taiwan’s workforce, making flexibility, work-life balance and transparent workplace culture critical factors in talent attraction and retention.

TAIPEI, TAIWAN – Media OutReach Newswire – 29 May 2026 – Taiwan’s talent market has gradually shifted from an employer-driven to a candidate-driven market through globalisation, digital transformation and pandemic-driven disruption. Meanwhile, the rapid advancement of technology and AI is not only accelerating demand for critical skills, but also reshaping industry structures and redefining the rules of talent competition.

Robert Walters, the world’s most trusted talent solutions business, said in its latest 15th anniversary report, Taiwan’s Talent Market: The New Rules of Competition, that “critical skills” are increasingly replacing tenure and job titles as the primary indicators of talent value and compensation. Particularly as Taiwan’s semiconductor industry strengthens its strategic position within the global technology supply chain, professionals with in-demand capabilities are seeing salary growth significantly outpace the broader market, making salary polarisation an increasingly structural feature of Taiwan’s labour market.

As competition for high-skilled talent intensifies, candidates are placing greater emphasis not only on compensation, but also on Career Value Proposition (CVP), including career development, workplace flexibility and management culture. The report also highlights the rise of a candidate-driven market, where professionals are becoming increasingly selective about what they expect from employers.

In today’s market, growing uncertainty and increasing business complexity are shifting competition away from workforce scale towards the ability to secure critical capabilities and high-value talent. John Winter, Country Manager of Robert Walters Taiwan, noted: “Since entering the Taiwan market in 2011, we have seen talent strategy evolve into a core business strategy. Organisations that can identify critical capabilities early, integrate talent effectively and continuously strengthen organisational resilience will be best positioned for long-term success.”

Global Supply Chain Restructuring Accelerates the Shift Towards a Skills-Based Talent Market and Salary Polarisation

Amid geopolitical uncertainty and ongoing global supply chain restructuring, organisations are increasingly reshaping their structures and global workforce strategies to strengthen resilience and competitiveness. As a result, hiring priorities are shifting away from narrow technical expertise towards cross-functional integration, strategic thinking and problem-solving capabilities. At the same time, talent assessment is moving beyond tenure and job titles, with greater emphasis placed on practical capability, skill scarcity and immediate business impact.

Rapid AI adoption is further accelerating demand for critical skills, driving increasingly concentrated salary growth across the market.

In semiconductor and high-tech industries, professionals changing jobs may see salary increases of 15–20%, while talent with expertise in AI, High-Performance Computing (HPC), Edge Computing and cross-border supply chain management may achieve salary growth of up to 30% reinforcing the growing shift towards a labour market increasingly defined by “skills value”. In contrast, salary growth among execution-focused roles has remained relatively moderate. According to Taiwan’s Directorate-General of Budget, Accounting and Statistics (DGBAS), nearly 70% of employees in 2025 earned below the average salary level — the highest proportion on record — highlighting widening salary polarisation across the labour market.

Candidate-Driven Market Takes Shape:

Career Value Proposition Emerges Alongside Salary as a Key Driver of Employer Attractiveness

The rise of in-demand skills is accelerating Taiwan’s shift towards a candidate-driven labour market, with professionals becoming increasingly selective about what they expect from employers. According to Robert Walters Taiwan’s 15th Anniversary Report, candidates are moving beyond a compensation-led mindset and placing greater emphasis on Career Value Proposition (CVP), including career growth, workplace flexibility and management culture.

As AI adoption and industry transformation continue to reshape the workforce, professionals are placing greater importance on long-term career development and employability. Robert Walters Taiwan’s research found that 54% of professionals view continuous learning and development opportunities as a key reason for staying with their current employer.

Expectations around workplace culture and working models are also evolving. The report shows that beyond salary and benefits (75%), professionals increasingly prioritise flexible working arrangements (36%) and an open, effective management culture (32%) when evaluating employers. Meanwhile, Taiwan’s National Development Council projects that Gen Z will account for approximately 30–33% of the labour force by 2030. As the influence of this generation continues to grow, priorities such as work-life balance, workplace flexibility and transparent organisational culture are becoming defining factors in employer attractiveness.

Reflecting on the findings, John Winter noted: “The rise of a candidate-driven market reflects a broader shift in how professionals evaluate employers. Beyond compensation, talent is increasingly prioritising long-term growth, flexibility and organisational culture. Companies that can provide meaningful career development and adaptability will be better positioned to attract and retain top talent.”

Five Strategies Reshaping Talent Competition:

Building Organisational Resilience Through Critical Capabilities and Skills Value

As geopolitical uncertainty, global supply chain restructuring and rapid AI adoption continue to reshape business environments, organisations are increasingly competing on critical capabilities and organisational resilience rather than scale alone. In this context, talent strategy is no longer a back-office HR function, but a core driver of transformation, competitiveness and long-term business sustainability.

Robert Walters Taiwan’s report identifies five key strategies organisations should focus on to remain competitive in a rapidly evolving market:

1. Shift from workforce expansion to critical capability planning
Hiring success will increasingly depend on the ability to identify and secure high-value talent with in-demand, business-critical skills.

2. Build compensation strategies around skills value
As skills replace tenure as the key measure of talent value, organisations must redesign salary structures and talent evaluation frameworks to remain competitive.

3. Strengthen long-term learning and capability development
AI-driven transformation will require organisations to proactively build reskilling and upskilling cultures to reduce future capability gaps.

4. Redesign workplaces around flexibility and employee experience
Beyond compensation, organisations must strengthen career development, flexibility and workplace culture to attract and retain high-performing talent.

5. Elevate talent strategy to a core business priority
Future talent competition will increasingly shape organisational agility, transformation capability and long-term competitiveness.

Reflecting on the evolving talent landscape, John Winter said: “In the past, talent strategies were largely designed to address immediate hiring needs. Today, the nature of talent strategy has fundamentally changed. Organisations must shift from asking ‘Who do we need now?’ to ‘What capabilities will we need in the future?’ The businesses that can continuously build adaptable talent and resilient organisations will be the ones best positioned for long-term success.”

-END-

About Taiwan’s Talent Market: The New Rules of Competition

Published as Robert Walters Taiwan’s 15th anniversary report, Taiwan’s Talent Market: The New Rules of Competition explores how globalisation, digital transformation, the pandemic, AI adoption and geopolitical uncertainty have structurally reshaped Taiwan’s labour market over the past 15 years.

The report combines Robert Walters Taiwan’s long-term market observations, talent insights and findings from the Salary Survey 2026, covering key sectors including semiconductors, high technology, manufacturing, digital transformation and cross-border operations. It also examines the major workforce trends redefining talent competition, salary structures and employer attractiveness in Taiwan’s evolving labour market.

To access the full report, please visit: https://reurl.cc/9W97bn

Hashtag: #RobertWalters

The issuer is solely responsible for the content of this announcement.

About Robert Walters

Robert Walters is the world’s most trusted talent solutions business. Across the globe, we deliver recruitment, recruitment process outsourcing and advisory services for businesses of all shapes and sizes, opening doors for people with diverse skills, ambitions, and backgrounds. We help organisations find the skills and solutions to reach their goals and assist talented professionals to power their unique potential.

The Taipei office specialises in placing candidates in the following specialities: accounting & finance, electronics & industrial, healthcare, human resources, IT & digital transformation, marketing, manufacturing, sales, semiconductors, software, supply chain, logistics & procurement.

Highlights of FY25/26 Results

HONG KONG SAR – Media OutReach Newswire – 28 May 2026 – Johnson Electric Holdings Limited (“Johnson Electric”), a global leader in electric motors and motion subsystems, today announced its results for the twelve months ended 31 March 2026.

Group sales for the 2025/26 financial year were US$3,650 million, an increase of 0.1% compared to the prior year. Net profit attributable to shareholders decreased by 23% to US$202 million or 21.59 US cents per share on a fully diluted basis. Adjusted net profit, excluding the effects of non-cash foreign exchange rate movements, the impairment of intangible assets, restructuring charges, and adverse fair value movements in investments, declined by 13% to US$234 million.

Sales Performance

The Automotive Products Group (“APG”) achieved sales of US$3,054 million, which amounted to 84% of total Group sales. Excluding currency effects, APG’s sales decreased by 3%.

Global automotive industry production volumes increased slightly over the prior year, but growth remains lacklustre in most markets due to affordability concerns and the challenges faced by OEMs and suppliers in adjusting to geopolitical uncertainty, tariff pressures, and the shifting economics of battery electric vehicles that continue to be shaped by the level of government subsidies available to consumers.

APG’s sales are divided broadly equally across the three major geographic regions of demand, but performance over the past year reflected distinct variations in local market conditions, as well as APG’s own mix of OEM customers and the timing of new program launches.

In Asia, the division’s sales declined by 7% on a constant currency basis primarily due to the ongoing erosion in market share held by Sino-foreign joint venture OEM customers in China. APG has continued to win significant new business awards from Chinese domestic OEMs and their suppliers, which now account for the majority of its sales in China. However, the division’s historically large share among joint venture customers has acted as a drag on its recent sales performance that is taking time to reverse. The domestic passenger vehicle market in China itself experienced a sharp slowdown in sales in the first quarter of 2026 due to the phasing out of trade-in subsidies designed to encourage the purchase of electric vehicles.

APG’s sales to the Americas increased by 1% on a constant currency basis in a market that saw total light vehicle production volumes broadly flat. The predominant factor constraining new car sales in North America is cost of living concerns, with many low to middle income car buyers struggling to afford new vehicles that, on average, have increased in price by over 30% since 2020.

In Europe, APG’s sales decreased by 2% on a constant currency basis. The European auto market continues to experience sluggish consumer demand at the same time that OEMs are hampered by excess production capacity and the impact of shifting emissions regulations on their product model line-ups.

APG’s strategy in the context of the varied and unpredictable operating environment for component suppliers is, firstly, to focus on bringing to market innovative motion technologies that enable electrification, reduce emissions, and enhance passenger safety and comfort. Secondly, APG aims to offer its diverse base of customers an unrivalled total cost and value proposition that combines speed, scale, and reliability of production with an adaptable global operating footprint.

The Industry Products Group (“IPG”) achieved sales of US$596 million – an increase of 2% compared to the prior year on a constant currency basis. After three successive years of declining sales, this marks an important return to growth for the division. In more commoditized product application segments, new business development has been redirected towards the rapidly growing base of Chinese manufacturers who are capturing an increasing share of the global market for consumer and commercial hardware goods – particularly for low-priced, entry-level products. In parallel, IPG is focused on supplying motion subsystem solutions to more specialized, higher-growth segments, including humanoid robotics, warehouse automation, medical devices, semiconductor manufacturing equipment, and liquid cooling applications.

Gross Margins and Operating Profitability

The Group’s gross profit of US$840 million, or 23.0% of sales, was essentially flat compared to the prior financial year. Slight increases in production staff costs, depreciation, and raw materials were offset by savings in other production overheads and direct labour.

Reported earnings before interest, tax and amortization (“EBITA”) amounted to US$258 million, a decrease of 22% compared to US$331 million achieved in the prior year. The decline was due to a combination of factors, including higher selling and administrative staff costs and other provisions, an impairment of intangible assets arising from a past acquisition, and reduced other income due to an adverse net change in the fair value of certain investments.

Net Profit and Financial Condition

Net profit attributable to shareholders decreased by 23% to US$202 million or 21.59 US cents per share on a fully diluted basis. Adjusted net profit, excluding the effects of non-cash foreign exchange rate movements, the impairment of intangible assets, restructuring charges, and adverse fair value movements in investments, amounted to US$234 million compared to US$268 million in the prior year.

The Group’s overall financial condition remains robust with a total debt to capital ratio of 10%, an interest coverage ratio of 22 times, and year-end cash reserves of US$902 million.

Dividends

The Board considers it appropriate to recommend maintaining the final dividend of 44 HK cents (5.64 US cents) per share, which together with the interim dividend of 17 HK cents per share, represents a total dividend of 61 HK cents (7.82 US cents) per share.

Chairman’s Comments on the Annual Results and Outlook

Commenting on the annual results for the financial year 2025/26, Dr. Patrick Wang, Chairman and Chief Executive, said, “Operating conditions for global manufacturing businesses during the financial year 2025/26 remained challenging, with end-market demand in most regions subdued and geopolitical events and uncertainties placing upward pressure on input costs.”

Dr. Patrick Wang further commented: “In the face of these headwinds, Johnson Electric maintained its long-standing resilience with sales and gross profit margins both holding up comparatively well. The bottom-line result, however, was negatively impacted by the effects of higher overhead expenses on a flat sales base, adverse net changes in the fair value of investments, and a non-cash intangible assets impairment charge.”

Concerning the near-term financial outlook, Dr. Patrick Wang said: “The global economy demonstrated resilience over the past year, despite the protracted conflict between Russia and Ukraine and the geopolitical shock of tariffs being imposed on US imports of goods from almost all countries. Looking ahead, the unstable and unpredictable conditions for trade and global manufacturing have been made even more precarious by the outbreak of war in the Middle East.”

“Johnson Electric has a long-standing track record in successfully navigating volatile global markets. In the near term, with geopolitical and macro-economic dynamics impossible to forecast with precision, management remains focused on cost control, managing the effects of inflation, and maintaining a prudent financial risk profile.”

“In parallel, however, we are also committed to invest in adapting and scaling our business model to meet strong underlying demand for our motion subsystem solutions in several high-growth end-markets and new product applications. Included among these are: thermal management systems for electric and hybrid vehicles that depend on a combination of water pumps, valves and actuators to support optimal vehicle cabin temperature, extend electric vehicle driving range, and contribute to longer battery life; solid oxide fuel cell power generation systems that are becoming established as an important source of low-emission, on-site electricity supply to AI data centres; and AI-enabled humanoid robots, which are widely viewed as one of the most significant industrial and commercial opportunities over the next ten to twenty years.”

Forward Looking Statements

This news release contains certain forward looking statements with respect to the financial condition, results of operations and business of Johnson Electric and certain plans and objectives of the management of Johnson Electric.

Words such as “outlook”, “expects”, “anticipates”, “intends”, “plans”, “believe”, “estimates”, “projects”, variations of such words and similar expressions are intended to identify such forward looking statements. Such forward looking statements involve known and unknown risk, uncertainties and other factors which may cause the actual results or performance of Johnson Electric to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding Johnson Electric’s present and future business strategies and the political and economic environment in which Johnson Electric will operate in the future.

Note to Editors and Securities Analysts: The full text of the Annual Results announcement, includingfinancial statements, is available through the Investors section of company’s website at www.johnsonelectric.com
Hashtag: #JohnsonElectric

The issuer is solely responsible for the content of this announcement.

About Johnson Electric Group

At Johnson Electric, our vision is to be the world’s definitive provider of innovation and reliable motion systems.

We are a global leader in electric motors, actuators, motion subsystems and related electro-mechanical components, serving a broad range of industries including Automotive, Liquid Cooling, Robotic Joints, Smart Metering, Business Equipment, Ventilation, Home Automation, Large Appliances, Power Tools, Medical Devices and Lawn & Garden Equipment. The Group is headquartered in Hong Kong and employes over 30,000 individuals in more than 20 countries worldwide. We are listed on The Stock Exchange of Hong Kong Limited ( Stock no. 179). For further information, please visit: www.johnsonelectric.com.

Measured across the full month with the daily rollover excluded, the Edge account averaged 0.04 pips on the majors, level with the best in the field.

RODNEY VILLAGE, SAINT LUCIA – Media OutReach Newswire – 28 May 2026 – TabTrade (tabtrade.com), a global forex and CFD broker with zero average spreads on major forex pairs, today pointed to Datalyst spread data placing the TabTrade Edge account among the lowest in the industry on the major currency pairs. Measured across the full month with the daily rollover period removed, the Edge account averaged 0.04 pips on the majors, level with the tightest average any broker recorded.

Datalyst samples spreads from more than 10,000 live trading accounts. The daily rollover window, a short period each evening when liquidity thins and spreads widen across the market, is taken out so the figure reflects active trading conditions. On that basis the Edge account averaged 0.04 pips across the majors.

In peak European hours the spread tightens to a 0.00 pip average on several majors. TabTrade reports the average rather than a best-case rate.

The Edge account runs raw spreads from 0.0 pips with a flat $3.50 commission per side and no markup on the spread. Orders route through Equinix LD5 in London, with fills averaging under 30 milliseconds.

“We would rather be judged on the average, and judged by someone other than us,” said Benjamin Boulter, Founder and CEO of TabTrade. “Once you take out the daily rollover, the Edge account sits with the best in the industry on the majors, and in peak hours it averages zero on several of them.”

Spread data is published at https://datalyst.forexco.com.au/ and Edge account details are at https://www.tabtrade.com/accounts/edge/

Hashtag: #TabTrade

https://www.tabtrade.com/

The issuer is solely responsible for the content of this announcement.

About TabTrade

TabTrade is a global forex and CFD broker with zero average spreads on major forex pairs. Clients trade forex, indices, commodities, metals, shares and cryptocurrencies on MetaTrader 5 and cTrader, with a $0 minimum deposit and institutional-grade execution through Equinix LD5 data centres. TabTrade Ltd is incorporated and registered in Saint Lucia under the International Business Companies Act (Registration Number 2025-00919), and client funds are held in segregated accounts. Markets made simple.

The ‘Xpress Sale’ is open for bookings from May 27 to May 31, 2026, with travel valid from June 15 to October 10. The discount applies to Lite and Value fare categories, giving passengers a wider window to plan summer, festive and early autumn trips across the carrier’s network. The airline began the sale through its website and mobile app on May 27, before widening access to major booking platforms from May 28.

The scale of the offer points to a calibrated push by Air India Express to fill capacity across a network that now spans 42 domestic and 17 international destinations. The carrier operates more than 500 daily flights and has been expanding its presence across South Asia, Southeast Asia and the Gulf, where demand is shaped by migrant traffic, family visits, business travel and holiday movement.

Passengers booking directly through the airline’s website or app during the sale are being offered zero convenience fees, adding a direct-channel incentive to the headline fare reduction. The campaign also includes additional benefits for Tata NeuPass members, including 20 per cent off Business Class fares, an extra discount of up to ₹300 on flight bookings and the opportunity to earn up to 8 per cent NeuCoins.

The Business Class offer covers seats with extra legroom, complimentary hot meals under the airline’s Gourmair product, enhanced check-in baggage allowance and priority services under Xpress Ahead. The airline is also offering up to 30 per cent off selected add-ons, including meals, seat selection, excess check-in baggage and extra cabin baggage options.

Air India Express is positioning the sale as both a demand-generation exercise and a customer-retention tool at a time when fare-sensitive travellers are comparing airlines more actively across direct platforms and online travel agencies. Promotional fare campaigns have become a central part of the low-cost aviation model, helping carriers improve forward bookings while encouraging passengers to buy optional services that raise ancillary revenue.

The offer arrives against a backdrop of steady aviation demand. Domestic air passenger traffic in FY2026 stood at about 167.7 million, reflecting moderate growth despite pressure from high operating costs and capacity adjustments across the sector. March 2026 alone recorded about 14.68 million domestic passengers, higher than both the previous month and the same month a year earlier.

Fuel remains one of the largest cost variables for airlines, often accounting for a major share of operating expenditure. Volatile jet fuel prices, currency pressure and airspace disruptions have added complexity to airline planning, making advance sales an important tool to manage load factors, cash flow and route economics. Discounted inventory can support demand on thinner routes while helping carriers protect aircraft utilisation during shoulder periods.

The campaign also fits into Air India Express’s broader transformation after the merger of AIX Connect with Air India Express was completed in October 2024. The merged low-cost carrier had a fleet of 88 aircraft at the time and has been working towards a larger narrow-body operation built around domestic and short-haul international markets.

The airline’s growth strategy includes a plan to more than double capacity over four to five years and build a fleet of more than 200 aircraft. Domestic routes are expected to take a larger share of capacity over time, rising towards about 60 per cent of operations, while short-haul international flying remains a key component of the network.

Gulf connectivity remains central to the carrier’s overseas strategy. Air India Express has been rebuilding and expanding services to West Asia, including Qatar, Bahrain, the UAE, Oman and Saudi Arabia, with more than 40 daily services to Gulf destinations after route resumptions and frequency additions. This market is especially important for travellers from Kerala, Karnataka, Tamil Nadu, Telangana and other states with deep labour, family and business links to the region.

At the interbank foreign exchange market, the currency opened weaker than Monday’s close of 95.26, losing 17 paise as importers and oil companies stepped up dollar purchases. The fall interrupted a brief recovery in the previous session, when the rupee had gained ground after suspected Reserve Bank of India intervention and softer crude prices lifted sentiment.

Market participants said the rupee’s early weakness reflected a broader risk-off mood across Asia. Oil-sensitive currencies faced selling pressure as traders reassessed the likelihood of a quick diplomatic settlement between Washington and Tehran. The rupee, already vulnerable because of the country’s heavy dependence on imported crude, moved in line with regional peers as energy prices rebounded and the dollar drew support from safe-haven demand.

Brent crude moved sharply higher towards the $100-a-barrel mark after fresh military action involving Iran raised doubts over the durability of peace efforts. Higher oil prices typically increase demand for dollars from refiners and importers, widening pressure on the trade balance and adding to inflation risks. For a country that imports nearly nine-tenths of its crude requirement, each sustained rise in oil prices feeds directly into currency, bond and equity market expectations.

The Reserve Bank of India is expected to remain active in the foreign exchange market to prevent disorderly moves rather than defend a fixed level. State-run banks were seen selling dollars in earlier sessions, a pattern traders often associate with central bank intervention. The central bank has used spot and forward market tools through periods of sharp volatility, drawing on its foreign exchange reserves while seeking to preserve market stability.

Foreign exchange reserves remain substantial by global standards, though they have eased from their February peak amid currency management and valuation changes. The buffer gives policymakers room to smooth volatility, but it does not fully insulate the rupee from external shocks when oil prices, global yields and geopolitical risks move in the same direction.

The rupee’s trajectory now hinges on three immediate variables: the price of crude, the strength of the dollar and the credibility of diplomatic efforts in the Middle East. A sustained climb in oil would complicate the inflation outlook and increase pressure on the current account. A softer dollar or clearer signs of de-escalation could help the rupee recover some lost ground, particularly if portfolio flows stabilise.

Bond markets also reflected caution. The benchmark 10-year yield edged higher as traders priced in the risk that imported inflation could narrow the central bank’s room for policy easing. Money-market rates showed a firmer bias, with swap markets reassessing the path of interest rates ahead of the next monetary policy review.

Equity markets faced a parallel adjustment, with energy-sensitive sectors, import-heavy companies and businesses exposed to foreign currency costs attracting closer scrutiny. Exporters, especially technology and pharmaceutical firms, may gain a translation benefit from a weaker rupee, but broader market sentiment remains tied to oil, capital flows and global risk appetite.

The pressure on the currency comes at a delicate moment for policymakers. Retail inflation has moderated from earlier peaks, but fuel costs and a weaker exchange rate can quickly alter expectations if the move persists. A weaker rupee raises the landed cost of crude, fertilisers, electronics and other imported goods, while also increasing the rupee value of external debt servicing for firms without adequate hedges.

Companies with dollar liabilities are likely to increase hedging activity if volatility persists. Importers generally prefer to cover near-term exposures when oil and the dollar rise together, while exporters may stagger dollar sales in expectation of better rates. This tug of war often intensifies near month-end, when corporate demand for foreign currency rises.