The rupee depreciated 24 paise to 94.39 against the US dollar in early trade on Tuesday, weighed down by elevated crude oil prices and month-end dollar demand amid a broader shift toward safe-haven assets.
Forex traders said Brent oil continued to move higher at $109 per barrel, keeping India's position vulnerable.
Moreover, factors such as unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments further.
At the interbank foreign exchange market, the rupee opened at 94.35 against the US dollar, then lost some ground and touched 94.39 against the US dollar in initial trade, registering a fall of 24 paise over its previous close.
On Monday, the rupee had settled at 94.15 against the American currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.49.
Brent crude, the global oil benchmark, was trading higher by 0.99 per cent at $109.30 per barrel in futures trade.
The Indian rupee seems to be standing at a crossroads, not weak enough to fall, not strong enough to rise, said CR Forex Advisors MD Amit Pabari.
Meanwhile, Goldman Sachs has raised its oil price forecast to $94.39 per barrel, while trimming India’s 2026 growth forecast to 5.9 per cent.
"When growth expectations soften at the same time, it reduces the cushion the currency usually enjoys," Pabari added.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, rising crude oil prices are keeping India’s position vulnerable.
"We have come to the end of the month, and the month-end demand could keep USD higher in the coming two days," Bhansali added.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 68.28 points or 0.09 per cent lower at 77,235.35, while the broader Nifty was trading up 14.25 points or 0.06 per cent at 24,029.25.
Foreign Institutional Investors offloaded equities worth ₹1,151.48 crore on Monday, according to exchange data.
Published on April 28, 2026