The rupee opened about 73 paise weaker on Monday as crude oil prices spiked amid Iran rejecting US proposals to end the war and continued FPI-related outflows, which dragged down domestic equities. It is now back over the 95 level.
The Indian currency opened sharply weaker at 94.9750 per US Dollar against the previous close of 94.25. It is currently trading at 95.20 level.
Brent crude oil surged over 4% to exceed $105 per barrel. This has a direct impact on the Rupee as India has to pay more for its oil imports. Further, it also has an inflationary effect in the economy.
FPIs are pulling out equity investment from the Indian markets due to risk-off sentiment on account of the West Asia war. This increases Dollar demand for repatriation purposes.
The BSE Sensex and NSE Nifty are currently trading down 1.33 per cent and 1.18 per cent, respectively.
Amit Pabari, MD & CEO, CR Forex Advisors, said: “On Friday, USD/INR kept swinging between 94.40 and 94.70 almost like a pendulum, refusing to choose a direction...This has been the story of the rupee over the last fifteen years, a currency constantly learning how to survive in a world addicted to the Dollar.”
He observed that while India’s foreign exchange reserves at near $690 billion, more than double the levels seen a decade ago, yet the rupee continues to weaken over time
“Why? Because India’s appetite for dollars has grown even faster....,” he said.
The dollar itself softened globally even after the U.S. economy added 115,000 jobs in April, far above market expectations of 62,000.
Pabari said: “Normally, stronger jobs data strengthens the dollar because it reduces expectations of Federal Reserve rate cuts. But this time, markets focused more on broader growth concerns and easing geopolitical fears.
“As a result, the Dollar Index was below 98, giving emerging-market currencies, including the rupee, some room to recover,” he said.
Published on May 11, 2026