The rupee pierced the 94 to the dollar mark on Thursday amid uncertainty over resolution of the West Asia war, with the US and Iran upping the ante, rising crude oil prices, strengthening dollar and continuous FPI-related outflows from the Indian equity markets.
The rupee closed at 94.1050 per dollar, down 31 paise, against the previous close of 93.7950. The Indian currency has been on a losing streak for the last four trading sessions.
As compared to last Friday’s close of 92.93, the rupee has cumulatively weakened about 118 paise so far this week. The rupee first breached the 94/dollar on March 23, 2026.
Dilip Parmar, Senior Research Analyst, HDFC Securities, said driven by high hedging dollar demand and a broader shift toward safe-haven assets, the rupee has weakened past the 94 level against the greenback.
“Central bank interventions failed to arrest the slide as a simultaneous rally in crude oil and the US dollar exerted additional downward pressure. In the near term, dollar-rupee retains its bullish momentum, with support around 93.80 and resistance at 94.60,” he said.
No end in sight
Amit Pabari, MD, CR Forex Advisors, said, “The rupee isn’t reacting to headlines, it’s reacting to uncertainty. And uncertainty, in markets, is like humidity you may not see it, but you definitely feel it.
“Globally, investors are clearly in “wait and watch” mode. Nobody wants to take bold bets when the next headline could change the entire narrative. Emerging market assets are feeling the pinch equities are slipping, currencies are softening, and safe-haven demand is quietly building.”
Meanwhile, the “State of the Economy” article in RBI’s latest monthly bulletin noted that amidst financial market volatility due to the West Asia conflict, the rupee witnessed depreciation against the dollar in March.
The depreciation pressures were, however, arrested in April following the measures (including capping the Authorised Dealers’ net open positions in the onshore deliverable market and limiting their activities in the non-deliverable forward market) taken by the Reserve Bank and the announcement of a ceasefire between the US and Iran, per the article, put together by RBI officials.
Published on April 23, 2026