Rupee Falls 49 Paise To 93.32 Against US Dollar: Why Is Indian Currency Declining?

The rupee on Monday declined 49 paise to 93.32 against the US dollar in early trade, due to costlier crude oil and a strong US dollar amid heightened geopolitical situation in the Middle East.

Crude oil prices surged after peace talks between the US and Iran during the weekend remained inconclusive, leading to geopolitical uncertainties. This led to an outflow of foreign capital from domestic equities, putting pressure on the Indian rupee, according to forex traders.

Indian benchmark indices, the Sensex and Nifty 50, opened the week on a weak note, plunging over 2 per cent in early trade on Monday, April 13. The Sensex dropped nearly 1,700 points, or more than 2 per cent, to an intraday low of 75,868, while the Nifty 50 slipped 500 points, or 2 per cent, to 23,556.

At the interbank foreign exchange market, the rupee opened at 93.30 against the US dollar and lost further ground, trading at 93.32 against the greenback in early deals, down 49 paise from its previous closing level.

On Friday, the rupee settled 32 paise lower at 92.83 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was higher by 0.38 per cent at 98.81.

Brent crude, the global oil benchmark, was trading higher by 7.28 per cent at $102.13 per barrel in futures trade after the US said it would blockade Iranian ports beginning Monday.

According to the US Central Command, the blockade would be “enforced impartially against vessels of all nations” entering or departing Iranian ports and coastal areas. However, ships travelling between non-Iranian ports will be allowed to transit the Strait of Hormuz.

On the domestic equity market front, the stock markets witnessed a steep fall in the morning trade. The 30-share Sensex plummeted 1600.73 points or 2.06 per cent to 75,949.52, while the Nifty tumbled 468.85 points or 1.95 per cent to 23,581.75.

Foreign Institutional Investors purchased equities worth Rs 672.09 crore on Friday, according to exchange data.

The Reserve Bank of India (RBI) said on Friday that the country’s forex reserves jumped by $9.063 billion to $697.121 billion during the week ended April 3, 2026. In the previous reporting week, which ended on March 27, the overall reserves had dropped by $10.288 billion to $688.058 billion.

The Asian Development Bank (ADB) on Friday said a prolonged conflict in the Middle East could undermine India’s macroeconomic performance through multiple channels, including higher energy prices, trade flow disruptions, and weaker remittance inflows.

In its Asian Development Outlook April 2026 report, the ADB projected India’s GDP growth to remain “robust” at 6.9 per cent in the current fiscal year, and rise to 7.3 per cent in the next, driven by strong domestic demand, and supported by easing financing conditions and lower US tariffs on Indian goods.

(With inputs from agencies)