Crude oil prices showed some pullback in early Asian trade after the US said it would begin efforts to free ships stranded in the Strait of Hormuz. US President Donald Trump said the move was aimed at easing disruptions for neutral nations, though he offered limited details.
Brent crude July futures eased toward $105.50 a barrel before edging back near $108, with traders closely tracking developments in US–Iran negotiations.
Despite the temporary relief in oil prices, analysts expect limited downside for crude due to the lack of progress in geopolitical negotiations, which continues to keep energy markets volatile.The rupee has remained under pressure in recent sessions, declining nearly 2% over the past eight trading days. The weakness reflects the impact of elevated oil prices, which have increased hedging activity by importers and sustained dollar demand from oil refiners.
Foreign portfolio investor (FPI) flows have also weighed on the currency. Outflows from Indian equities stood at nearly $6.5 billion in April, taking total withdrawals in 2026 to about $20.6 billion—already exceeding last year’s levels.
Market participants said the rupee’s near-term outlook remains challenging due to a combination of weak sentiment, continued capital outflows, and pressures from the Reserve Bank of India’s forward book positions, which have added to supply-demand imbalances in the currency market.
–With agencies inputs
First Published: May 4, 2026 9:14 AM IS
