Rupee under pressure from oil, dollar demand

ET BureauLast Updated: Apr 29, 2026, 05:42:00 AM IST

Synopsis

The Indian rupee weakened significantly on Tuesday, closing at 94.54 against the US dollar. Rising oil prices and strong dollar demand from importers pressured the currency. Traders noted the Reserve Bank of India likely intervened to curb further losses. Elevated oil prices and global trade uncertainties are creating a negative sentiment for the rupee.

Mumbai: The Indian rupee ended 35 paise lower on Tuesday, to close at 94.54/$, versus 94.19/$ Monday. The currency was pressured by a rise in oil prices and sustained dollar demand by importers and private oil companies.

The currency, which opened at 94.37/$ on Tuesday, traded with a negative bias throughout the day and touched its weakest point of 94.58/$. The RBI likely intervened at the weakest level, to contain further losses for the currency, traders said. "There is so much dollar demand that the rupee will not strengthen even moderately if the RBI does not intervene. We can see new lows if oil prices remain at these elevated levels," said Anil Bhansali, head of treasury, Finrex Treasury Advisors.

He expects the rupee to trade between 94.25/$ and 94.75/$. The rupee's record low closing level stands at 94.83/$. Brent was up 4.1% on Tuesday at $112.70 a barrel, reports Reuters. "There was one way movement in the rupee on Tuesday. Between uncertainty of the trade deal and high oil prices, the sentiment is negative," said a trader from a public sector bank.

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