Indian Rupee Hits Three-Month Low as Rising Oil Prices Deepen Losses

The Indian rupee continued its downward trend on Thursday, marking its fourth consecutive session of losses and the longest decline in three months, as rising global oil prices weighed heavily on the currency.

The rupee closed at 94.1050 against the US dollar, slipping 0.3% on the day and falling more than 1% over the week. The decline comes as crude oil prices surged nearly 15%, crossing the $100 per barrel mark amid stalled negotiations between the United States and Iran.
 

Market sentiment was further impacted by escalating tensions in the Gulf region, including disruptions in key shipping routes such as the Strait of Hormuz. Analysts noted that uncertainty over the reopening of the vital waterway continues to create pressure on global energy markets and currencies.
 

Higher energy costs also affected equities, with India’s benchmark Nifty 50 index dropping 0.8%, reflecting broader weakness across regional markets. Meanwhile, mixed signals from partial withdrawal of supportive financial measures added to investor caution.

Despite the currency pressure, recent business data showed resilience in India’s private sector, with manufacturing and services activity rebounding in April. However, economists warn that sustained high oil prices could lead to inflationary pressures and may influence future monetary policy decisions by the Reserve Bank of India.