Industry Odisha Bureau, Sep 08: The Indian rupee weakened against the U.S. dollar on Tuesday. It touched 94.66, down 10 paise. Surging crude oil prices drove the pressure. The rupee opened at 94.49 in early trade. It then slipped to 94.66 against the dollar. That marked a 10-paise fall from Monday’s close.
Monday’s session had already seen a 13-paise decline. The rupee closed that day at 94.56. Tuesday’s move extended a two-day slide. Brent crude traded near $97.61 per barrel. That marked a 0.63% rise in futures. Prices climbed amid escalating US-Iran tensions.
Traders cited fears over the Strait of Hormuz specifically. Concerns centre on potential disruption to oil flows. No actual supply disruption has been confirmed. Higher crude typically raises dollar demand from Indian importers. India relies heavily on imported oil. That demand can add pressure on the rupee.
Yet the decline stayed contained through the session. The Reserve Bank of India kept selling dollars. That intervention offset some of the external pressure. Foreign-currency inflows under special schemes also helped. Forex traders said these inflows supported the rupee further. Together, they kept the currency largely range-bound.
The dollar index offered a mixed signal meanwhile. It traded near 98.80, down about 0.37%. A softer dollar does not guarantee rupee gains automatically. Anil Kumar Bhansali of Finrex Treasury Advisors commented on the dynamic. “The RBI’s intervention has been particularly important,” he said. He linked it directly to containing oil-driven pressure.
Bhansali expects the rupee near a 94.00 to 94.75 range. That reflects crude near $97 and RBI’s continued dollar sales. His projection is not a guaranteed trading band. Markets are now watching several upcoming data points. Both U.S. and India CPI releases loom ahead. The Federal Reserve’s September 16 FOMC meeting also looms.
None of these outcomes can be predicted in advance. They remain triggers markets will watch closely. Currency direction could shift depending on their results. Domestic equities reflected some of this external caution. The Sensex fell 382.25 points to 75,750.56. The Nifty declined 97.80 points to 23,681.80.
Foreign institutional investors still bought equities on net. Their Monday purchases totalled ₹280.13 crore. That single session’s flow does not determine rupee direction alone. For now, the rupee sits between two forces. Expensive crude and geopolitical risk push it lower. RBI dollar sales and inflows continue holding that pressure in check.
