Rupee Falls For Third Straight Session, Approaches 94 Against US Dollar
Rupee weakens for third straight day, nearing 94 against US dollar amid Iran-US talks uncertainty and rising crude oil prices.
The Indian Rupee weakened for a third consecutive trading session on Wednesday, slipping closer to the 94-per-US-dollar mark amid rising global uncertainty and sustained pressure from foreign capital outflows. The currency ended the day at 93.83 (provisional), down 39 paise, as concerns over stalled US-Iran peace talks and escalating geopolitical tensions pushed crude oil prices higher and weighed on investor sentiment.
In intraday trade at the interbank foreign exchange market, the rupee opened at 93.69 and touched a low of 93.87 against the US dollar. The currency briefly approached the psychologically important 94 level, which it had first breached on March 23. Traders said the persistent volatility reflected a combination of global risk aversion and weak domestic equity market performance.
Market participants noted that uncertainty surrounding diplomatic efforts between the United States and Iran has contributed significantly to volatility in global energy markets. Brent crude prices rose to around USD 99.75 per barrel, driven in part by reports of attacks on ships in the Strait of Hormuz, a key global oil transit route. Higher crude prices typically pressure the rupee due to India’s heavy dependence on oil imports.
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Analysts also pointed to continued foreign institutional investor (FII) outflows and weakness in domestic equity benchmarks as additional factors dragging the currency lower. On Wednesday, the Sensex fell 756.84 points, while the Nifty declined 198.50 points, reflecting broader risk-off sentiment in financial markets.
According to forex analysts, the rupee is expected to remain under pressure in the near term, with USD-INR likely trading in a range between 93.60 and 94.20. While a softer US dollar index offered limited support, experts said it was not enough to offset the combined impact of geopolitical tensions, crude oil spikes, and capital outflows. The rupee had previously shown some resilience, gaining in earlier sessions, but has since reversed course as global uncertainty intensified. With investors closely watching developments in West Asia and crude oil markets, currency traders expect continued volatility in the coming days.
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