The Indian rupee ended Thursday virtually unchanged, with the central bank's dollar sales preventing a breach of the psychologically important 96-per-dollar level despite volatile oil prices and corporate demand for greenbacks. The currency closed at 95.68 per dollar, barely moving from the previous session's 95.6475. Main Developments Brent crude futures swung between $93 and $89 a barrel as renewed U.S.-Iran attacks raised fears about oil flows through critical shipping lanes. State-run banks stepped in to sell dollars near the day's low around 95.75, halting the rupee's slide. Elevated oil price volatility has driven importers to increase hedging, adding downward pressure on the rupee in recent sessions. The dollar index held steady at 100.8, while most Asian currencies slipped. Read also: Pakistan removed from Lloyd's war-risk shipping list after decades Background The rupee had weakened past 96 per dollar last week and appeared close to testing its record low of 96.96 before the Reserve Bank of India intervened to support the currency. India imports nearly 90% of its crude oil, making it one of the most vulnerable economies to Middle East supply disruptions. Meanwhile, the 30-year U.S. Treasury bond yield hit a 19-year high of 5.239% on Thursday, a day after the Federal Reserve held rates steady but offered mixed signals on inflation and future policy. "While recent rupee strength has been aided by RBI intervention, the broader backdrop of elevated crude oil prices, persistent geopolitical tensions, and a Fed that continues to keep the door open for further tightening remains supportive for the dollar," said Amit Pabari, managing director at CR Forex. Why It Matters For a country that relies on imports for most of its oil needs, every rupee depreciation raises the cost of fuel, fertilizers, and industrial inputs, feeding inflation and widening the trade deficit. The RBI's willingness to burn reserves to defend the 96 level signals its concern about runaway depreciation, but the strategy has limits if oil stays elevated and the dollar remains strong. What's Next Traders will watch for further RBI intervention if the rupee again approaches 96. The direction of crude prices, shaped by Middle East hostilities and potential supply disruptions, remains the single biggest variable. The Fed's next policy meeting and any clarity on rate cuts will also influence dollar-rupee dynamics.