The Rupee on Tuesday closed at a one-month low against the US Dollar, weighed down by hardening crude oil prices and outflow of greenbacks due to continued FPI sales from the Indian equity markets.

The Indian currency closed 35 paise down at 94.54 per US Dollar against the previous close of 94.19. Intraday, the Rupee hit a low of 94.5750.

Crude oil prices topped the $110 per barrel mark amid reports the US President Donald Trump is unhappy with Iran’s offer to end the war. FPI related outflows from the Indian equity markets amounted to about $223 million on Tuesday.

Amit Pabari, MD, CR Forex Advisors, noted that while global cues dominate headlines, one domestic factor -- foreign investor outflows -- continues to quietly weigh on the Rupee.

“So far this year, FIIs have pulled out over $19 billion from Indian equities. When money exits at this scale, dollars are bought and that naturally weakens the Rupee. No drama, no headlines just steady pressure,” he said.

Pabari emphasised that amid all this, the RBI is not sitting idle -- its latest directive asking banks to report offshore Rupee derivative exposures signals a strategic shift.

“This is not about today’s volatility. This is about tomorrow’s transparency. By tracking the global footprint of Rupee trades, the RBI aims to improve price discovery and tighten oversight,” he said.

Published on April 28, 2026