The Indian rupee opened lower against the US dollar on Wednesday, March 11, tracking volatility in global crude oil prices and continued foreign investor outflows from domestic equities.
The rupee opened at 91.94 per dollar, down 0.14% from its previous close of 91.81, according to market data.
Currency traders said the local unit remains sensitive to swings in crude oil prices and foreign portfolio flows, even as a recent pullback in oil has eased some pressure on the currency.
However, lingering uncertainty around the Iran conflict and sustained selling by foreign portfolio investors could limit any sharp recovery in the currency.
Brent crude has retreated to around $88 per barrel after briefly climbing close to $120 at the peak of concerns over supply disruptions tied to the Iran war. The decline in oil prices has eased some pressure on the rupee, given India’s heavy reliance on energy imports.The recent pullback in crude has been driven by hopes of a potential de-escalation in the conflict, expectations that the Group of Seven nations may release strategic oil reserves, and shifting developments related to shipping through the Strait of Hormuz.
However, analysts caution that the outlook remains uncertain. In a daily note, Morgan Stanley said none of the potential outcomes around supply relief are guaranteed, adding that signals from the United States and Iran on de-escalation remain mixed.Global risk sentiment showed tentative improvement, with Asian equities and US stock futures rising after a report that the International Energy Agency has proposed the largest release of oil reserves in its history to help cool crude prices.
Still, pressure on the rupee persists as foreign investors continue to trim exposure to Indian equities. Overseas investors have pulled out nearly $4 billion from domestic stocks so far this month, adding to pressure on the local currency.
Market participants said the rupee may remain volatile in the near term, with crude oil prices, foreign portfolio flows and the central bank’s actions expected to guide the currency’s trajectory.
–With Reuters inputs
First Published: Mar 11, 2026 9:02 AM IS
