The rupee fell 0.7% this week to close at a fresh low of 92.46 against the US dollar.

The rupee tumbled to fresh lows on Friday amid concerns over rising crude oil prices, which remain above $100 a barrel, on inflation and its impact on capital flows.

The local currency ended at 92.46 against the dollar, after hitting an intra-day low of 92.49, mirroring the trend across Asian currency markets. The previous all-time low was 92.36, set on Thursday. The rupee closed down 0.7% for the week.

The rupee weakened for the second straight week as geopolitical concerns weighed on the currency.

“Until the Middle East crisis shows any real sign of abatement, the rupee will remain under pressure,” currency risk management advisor KN Dey said.

The local currency opened the day at 92.34/35 but immediately came under pressure as the dollar index held above the 100 mark and Brent crude hit a 20-month high of $102.73 due to supply disruptions. Iran said the Strait of Hormuz, one of the world’s most important oil chokepoints, would remain closed to ships and tankers.

“Continuous foreign fund inflows have kept the rupee under significant pressure amid risk aversion,” said Dilip Parmar, senior research analyst at HDFC Securities.

Foreign portfolio investors sold about $6.55 billion in March alone.

The Reserve Bank of India is said to be intervening in the market at the level of 92.48.

The RBI is intervening and will continue to slow down the rupee’s fall and avoid any undue volatility, but there is a limit to how much it can do, a forex dealer said.

India’s foreign currency reserves fell by $11.11.7 billion to $716.810 billion in the week ended March 6, as the central bank is likely to sell dollars to support the rupee.

“Intervention only acts as a speed breaker. Balance sheet management before the end of the fiscal year can also lead to dollar demand,” Dey said.

Parmar said demand for dollars from importers and traders has also increased as the currency tumbled to record lows. It predicts immediate resistance between 92.50 and 92.70 and support at 92.05.

One-month forward premium increased to 3.94% while one-year premium was 2.86%. Traders expect the local currency to hit new lows next week if there are no signs of the crisis easing.