Opening levels and movement
The rupee began the session at 92.66 per US dollar, compared with Wednesday’s (April 8’s) close of 92.58.
This marks a decline of 0.08 paise, or roughly 0.09% depreciation, indicating mild pressure on the domestic currency at the start of trade.
Why the rupee slipped
The primary driver behind the rupee’s weakness was a shift in global risk appetite, triggered by renewed concerns over oil supply disruptions.
Ceasefire uncertainty lifts oil prices
Hopes of a sustained ceasefire between Iran and the US had briefly improved sentiment, but fresh geopolitical tensions have cast doubt on whether oil flows through the Strait of Hormuz will normalise.
- Brent crude futures rebounded over 2% to $96.76 per barrel
- This comes after a sharp 13.2% fall in the previous session
The rebound reflects market anxiety that oil supply routes may remain disrupted longer than expected.
Fragile geopolitical backdrop
- Continued Israeli strikes in Lebanon
- Iran signaling reluctance to proceed with peace talks
- Shipping firms seeking clarity before resuming transit
Together, these factors have reinforced uncertainty, keeping energy markets volatile and pressuring oil-importing currencies like the rupee.
Risk sentiment turns cautious
The broader market tone also turned slightly risk-off:
- Asian currencies weakened 0.1%–0.4%
- US equity futures slipped about 0.2%
- Federal Reserve meeting minutes signaled a hawkish stance, offering limited support to global risk assets
For emerging market currencies, including the rupee, such conditions typically lead to mild depreciation as investors move toward safer assets.
What could limit the downside?
Despite the weak start, traders expect some intraday support for the rupee:
- Ongoing unwinding of arbitrage positions by banks could provide demand for the local currency
- This technical factor may cushion sharper losses in the near term
However, market participants remain cautious about the near-term trajectory.
A trader at a private bank indicated that the dollar/rupee pair may show a slight downward bias in the next couple of sessions, before potentially moving back toward 93.50 levels.
–With Reuters inputs
First Published: Apr 9, 2026 9:10 AM IST
