The rupee has been under pressure this month, declining around 1.7% as higher crude oil prices increased concerns over India’s import bill and demand for dollars. The currency also remains close to its record low of 96.96 per dollar, touched in May.
The latest weakness comes after Brent crude oil climbed above $90 a barrel, extending its rally as tensions between the United States and Iran intensified. Rising oil prices typically weigh on the rupee because India imports the majority of its crude oil, increasing the country’s dollar outflows.
Earlier, the rupee had recovered from its record lows after crude prices eased and the Reserve Bank of India introduced measures to attract dollar inflows. Improved foreign investment into Indian equities had also supported the currency. However, the recent rebound in oil prices has reversed some of those gains.Geopolitical risks have also added to market uncertainty. The conflict in the West Asia has intensified, with reports of continued military strikes and disruptions to shipping through the Strait of Hormuz, a key global oil transit route. Any prolonged disruption could keep crude prices elevated, adding further pressure on oil-importing economies such as India.
Other oil-sensitive Asian currencies, including the Indonesian rupiah and the Philippine peso, also weakened as investors reacted to the rise in crude prices and broader risk-off sentiment in global markets.
Market participants will continue to track developments in the West Asia, movements in crude oil prices, foreign fund flows and any intervention by the Reserve Bank of India for further cues on the rupee’s direction.
-With Reuters inputs
First Published: Jul 20, 2026 9:19 AM IS
