USD/INR: Rupee Opens Lower at 95.75 Against US Dollar Amid Rising Oil Prices and West Asia Tensions

The Indian rupee started Wednesday’s trading session on a weaker note against the US dollar, reflecting cautious market sentiment linked to geopolitical tensions in West Asia and persistently high crude oil prices. 

Rupee Opens Lower Against Dollar

The Indian rupee opened at 95.75 against the US dollar on May 27, 2026, compared to the previous session’s closing level of 95.68.

The domestic currency weakened amid ongoing geopolitical uncertainty and concerns over the impact of elevated crude oil prices on India’s trade balance and inflation outlook.

West Asia Conflict Weighs on Market Sentiment

Investor sentiment remained cautious after Iran alleged that the United States violated a ceasefire by conducting strikes near the Strait of Hormuz.

The development increased concerns over the possibility of further escalation in the region, which is considered a key global energy transit route.

The continued uncertainty surrounding the conflict contributed to pressure on emerging market currencies and broader risk-sensitive assets.

Crude Oil Prices Stay Elevated

Brent crude futures traded around $98.8 per barrel during Asian trading hours, despite witnessing a modest decline during the session.

Oil prices remained close to the $100 per barrel mark, keeping concerns elevated for countries heavily dependent on crude imports.

Higher crude prices can impact India’s import bill, inflation levels and current account balance, factors that often influence the movement of the rupee.

Foreign Investor Outflows Continue

Foreign portfolio investor activity also remained a key factor affecting the rupee.

According to market data, overseas investors have sold more than $24 billion worth of Indian equities and bonds between March and May 2026.

The sustained outflows have contributed to pressure on domestic financial markets and weighed on demand for the Indian currency.

Read More: RBI Dollar-Rupee Swap Attracts Strong Demand with Nearly $10 Billion Bids.

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Conclusion

The Indian rupee remained under pressure at the start of Wednesday’s session amid elevated crude oil prices, geopolitical tensions in West Asia and continued foreign investor outflows. Currency markets are likely to remain sensitive to developments related to the Iran conflict, oil price movements and global investor sentiment in the near term.

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