The Indian rupee weakened by 25 paise to ₹95.33 against the U.S. dollar in early trade, following a sharp rise in crude oil prices that raised concerns about India's import bill. Brent crude surpassed the $100-per-barrel mark, while sustained demand for the dollar also pressured the currency.
The rupee opened at ₹95.15 and slipped to ₹95.33, after closing at ₹95.08 in the previous session. Analysts noted that breaking above the psychologically important ₹95 level triggered increased dollar demand and stop-loss activity. However, the decline was partly offset by intervention from the Reserve Bank of India.
Brent crude traded at $100.98 per barrel amid escalating U.S.-Iran tensions and worries about potential disruptions to oil flows through the Strait of Hormuz. Since India imports nearly 90% of its crude oil, a $10 rise in oil prices could add approximately $12–15 billion to the annual import bill, intensifying pressure on the current account and the rupee.
The dollar index was at 98.72, down 0.09%. In the domestic equity market, the Sensex gained 38.07 points to 74,809.95, while the Nifty rose 9.85 points to 23,439.20 in early trade. Foreign Institutional Investors sold equities worth ₹582 crore on a net basis in the previous session. Analysts expect that if the USD/INR rate stays above ₹95, the rupee could weaken further toward ₹95.50 and ₹96.
