The rupee depreciated 13 paise to 94.81 against the US dollar in early trade on Wednesday, as rising global oil prices kept the currency under pressure.

Forex traders said elevated crude oil prices and month-end dollar demand amid a broader shift toward safe-haven assets dented investor sentiment.

The focus has now shifted to the upcoming US Federal Reserve policy decision. While rates are expected to remain unchanged, the tone will carry more weight than the action, they said.

At the interbank foreign exchange market, the rupee opened at 94.79 against the US dollar, then lost some ground and touched 94.81 against the US dollar in initial trade, registering a fall of 13 paise over its previous close.

On Tuesday, the rupee depreciated 53 paise to close at 94.68 against the US dollar.

"The oil is above $111 with no resolution to the US-Iran crisis, although the unilateral ceasefire of the US continues and Iran also showing resilience, but the non-passage of ships from the Strait of Hormuz is a matter of concern, keeping oil and the dollar up," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04 per cent higher at 98.67.

"The dollar was steady before the FED decision in the face of the ongoing Iran-US war. Broadly, the dollar Index is range-bound with war-related uncertainty supporting the safe-haven dollar," Bhansali said.

Brent crude, the global oil benchmark, was trading lower by 0.21 per cent at $111.03 per barrel in futures trade.

Meanwhile, the United Arab Emirates said on Tuesday it will leave OPEC effective May 1, in a major blow to the global oil cartel.

"The rupee is navigating through a phase where global uncertainty, oil prices, and capital flows are all pulling at once. For now, 93.50–93.80 remains a strong demand zone, where dips are likely to find support. On the upside, 94.50–94.80 continues to act as a resistance band," said CR Forex Advisors MD Amit Pabari.

On the domestic equity market front, Sensex climbed 358.92 points to 77,245.83 in opening trade, while the Nifty was trading up 101.2 points to 24,096.90.

Foreign Institutional Investors offloaded equities worth ₹2,103.74 crore on Tuesday, according to exchange data.

Meanwhile, India's industrial production growth decelerated to a five-month low of 4.1 per cent in March on account of subdued manufacturing growth and almost flat expansion in the power sector amid the West Asia crisis, according to official data released on Tuesday.

The factory output, measured in terms of the Index of Industrial Production (IIP), expanded by 3.9 per cent in March 2025, an official statement said.

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Published on April 29, 2026