Rupee Hits 3‑Week Low Past ₹94 as Oil Surge Weighs on Sentiment

The Indian rupee weakened sharply on Thursday, slipping past the ₹94 per dollar mark amid a renewed rise in global oil prices. The currency touched its lowest level in more than 3 weeks during early trade before trimming some losses later in the session.

Elevated geopolitical tensions and pressure across regional currencies added to the negative sentiment. Market participants remained cautious amid volatile global cues and energy market disruptions.

Rupee Movement and Intraday Performance

The rupee fell to an intraday low of ₹94.1525 per dollar, its weakest level since March 30, 2026. It later recovered modestly to trade around ₹94.04, representing a decline of 0.26% on the day.

The movement reflected sustained pressure from higher crude oil prices and cautious positioning by market participants. Volatility remained elevated during early trading hours.

Crude Oil Prices and Geopolitical Risks

Brent crude futures climbed to around $106 per barrel, driven by renewed concerns over shipping disruptions in the Gulf region. Uncertainty surrounding a potential peace agreement between the U.S. and Iran kept risk sentiment fragile across global markets.

For India, higher oil prices tend to increase import costs and pressure the current account balance. This dynamic often translates into weakness for the domestic currency.

RBI Measures and Foreign Exchange Market Impact

Earlier in the week, the Reserve Bank of India withdrew restrictions introduced on April 1, 2026, related to foreign exchange market operations. Banks were once again allowed to offer non‑deliverable forwards to clients, while corporates were permitted to rebook cancelled foreign exchange contracts.

These steps were aimed at restoring market efficiency and liquidity. However, the immediate impact on the rupee remained muted amid strong external headwinds.

Global Market Trends and Regional Currency Moves

Global markets were also affected by the Iran‑related geopolitical uncertainty. MSCI’s index of Asian equities declined by around 0.6% during the session.

Oil‑sensitive regional currencies weakened between 0.3% and 0.8%, reflecting broader risk aversion. The synchronised decline highlighted how energy price shocks were influencing both equity and currency markets across the region.

Read More: India to Enforce Offshore Rupee Trade Reporting Despite Bank Concerns.

Conclusion

The rupee’s slide past ₹94 per dollar underscores its sensitivity to external shocks, particularly movements in crude oil prices. Rising geopolitical risks and softer regional currencies added to near‑term pressure.

While recent regulatory steps by the RBI aim to improve forex market functioning, global factors remain the dominant driver. Overall, currency sentiment continues to be shaped by oil dynamics and risk conditions in international markets.

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