The rupee opened at Rs 95.28 per dollar on Aug 7, a drop of six paise from the previous session. This move came after a sharp rise in Brent crude prices.
Brent crude jumped almost 4% overnight, reaching about $84 per barrel. The surge followed Iran’s statement that it would keep US and Israeli vessels out of the Strait of Hormuz and charge a toll to other ships.
India imports roughly 85% of its energy needs. A higher oil price could raise import costs and widen the current account deficit, putting additional pressure on the rupee.
In the past two weeks, the Reserve Bank of India (RBI) has intervened in the market to curb a steep depreciation of the currency. Traders now view the risk from higher Brent prices as re‑emerging.
Finrex Treasury Advisors noted that the RBI’s buying at Rs 94.92 has created a temporary base. They expect the rupee may fall further, providing exporters a chance to sell and importers a chance to buy at lower rates.
Market participants will closely watch the RBI’s next moves and whether continued high oil prices keep the rupee under pressure.