The rupee opened at 94.87 per US dollar, compared with Tuesday’s (September 8’s) close of 94.82, marking a decline of 5 paise.
The move comes after the rupee fell 18 paise on Tuesday (September 8), its sharpest single-day decline in nearly a month, amid a rise in crude prices and heightened tensions in West Asia.
Brent crude rose to around $99.66 a barrel, its highest level since late July, after Iran launched fresh attacks on US military assets in the Gulf. Higher oil prices are a concern for India because the country relies heavily on imports to meet its crude requirements, increasing demand for dollars and potentially widening pressure on the rupee.
RBI intervention in focus
The Reserve Bank of India has been intervening in the foreign exchange market in recent weeks to contain volatility and support the rupee. The central bank’s intervention had helped the currency reach a two-month high late last week.
However, traders said RBI intervention on Tuesday (September 8) was not sufficient to prevent the rupee from weakening as oil prices climbed.
Market participants are now watching whether the central bank continues to support the rupee as aggressively, particularly if the pressure is being driven by higher crude prices. A weaker rupee can increase the domestic cost of imported crude and other commodities.
What could pressure the rupee further?
Apart from oil, a rise in US Treasury yields could add to pressure on the rupee by making dollar-denominated assets more attractive. Higher crude prices could also influence expectations around US interest rates.
The rupee’s next key level could be 95 per dollar, with traders indicating that the currency could test this mark if pressure from crude prices and geopolitical risks persists.
For Indian consumers and businesses, a sustained rupee decline can make imported goods, overseas education, travel and other dollar-linked expenses more expensive. It can also raise input costs for companies that depend on imported raw materials.
First Published: Sept 9, 2026 9:18 AM IST
