Rupee Falls Below 94/$ as Oil Surge, Outflows Weigh

Key Moments

The rupee closed at 94.11 per dollar (provisional) on Thursday, down 33 paise and marking its fourth straight session of losses.
Since April 17, the currency has weakened by 120 paise, or nearly 1.3%, amid rising crude prices, equity selling, and foreign fund outflows.
Brent crude traded 1.88% higher at $103.83 per barrel, while the dollar index stood 0.12% higher at 98.53.

Rupee Extends Losing Streak and Breaks 94-Level Again

The rupee continued to decline for a fourth consecutive trading session on Thursday (April 23, 2026), closing 33 paise weaker at 94.11 (provisional) against the US dollar. The domestic currency slipped past the 94-per-dollar threshold for the second time in a month as a spike in crude oil prices and stalled peace efforts in West Asia weighed heavily on sentiment.

Forex traders noted that the rupee has fallen more than 1% over the past week, pressured by broad-based demand for the US currency, sustained selling in local equities, and continuous foreign portfolio outflows.

Intraday Trading Range and Recent Performance

At the interbank foreign exchange market, the rupee opened at 94.03 against the dollar. It touched an intraday low of 94.17 and a high of 93.98 before settling at 94.11 (provisional), representing a 33 paise decline from the previous close.

On Wednesday, the rupee had already weakened by 34 paise to finish at 93.78 per dollar, its third straight day of losses. Over the last four sessions, the currency has dropped a total of 120 paise, or nearly 1.3%, from the April 17 closing level of 92.91.

Date / Period	Rupee Level vs USD	Change	Comments
April 17 close	92.91	–	Reference level before recent 4-session slide
Wednesday close	93.78	Down 34 paise	Third consecutive day of decline
Thursday intraday high	93.98	–	Strongest level of the day
Thursday intraday low	94.17	–	Weakest level of the day
Thursday close (provisional)	94.11	Down 33 paise	Fourth straight session of losses
4-session move from April 17	–	Down 120 paise	Nearly 1.3% depreciation

Geopolitics and Earlier Record Levels

The rupee has been contending with geopolitical risks stemming from the war in West Asia that began on February 28. During this period of heightened tension, the currency first broke through the 94-per-dollar mark on March 23 and hit its lowest-ever intraday level of 95.22 on March 30.

The rupee subsequently regained some ground after the Reserve Bank of India introduced a series of measures aimed at stabilizing the currency. However, renewed pressure from energy prices and risk aversion has again brought the exchange rate under strain.

Global Market Backdrop: Stronger Dollar and Higher Oil

The broader external environment remained challenging for the rupee. The dollar index, which tracks the performance of the US currency against a basket of six major peers, was 0.12% higher at 98.53.

Brent crude futures, the global oil benchmark, were trading 1.88% higher at $103.83 per barrel, intensifying concerns over India’s import bill and external balances.

Analyst Views and USD-INR Outlook

According to Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, the domestic currency continued to come under pressure as risk-off sentiment gripped local assets and the dollar remained firm.

“Surge in crude oil prices, too, weighed on the rupee. Global market sentiments deteriorated amid uncertainty over US-Iran talks,” Choudhary said and projected the USD-INR spot price “in a range of ₹93.80 to ₹94.50”.

Equity Market Selloff and Foreign Outflows

Domestic equities saw significant losses alongside the rupee’s slide. The 30-share Sensex plunged 852.49 points, or 1.09%, to close at 77,664.00. The Nifty index fell 205.05 points, or 0.84%, to end at 24,173.05.

Exchange data showed that Foreign Institutional Investors sold equities worth about ₹2,078.36 crore on Wednesday (April 22, 2026), contributing to the pressure on the currency as overseas funds continued to trim exposure.

Structural Pressures: Current Account and FPI Flows

Commenting on the underlying drivers of the rupee’s weakness, V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, highlighted the role of external balances and portfolio flows.

He said, “The fundamental factor behind the rupee’s weakness is the rising current account deficit caused by high crude prices and the sustained FPI outflows from India. So long as these factors remain the same, the rupee will remain weak, and if crude price rises again due to escalation of the conflict, the rupee will depreciate further.”

Escalating Tensions in West Asia and Trade Risks

Prospects for global trade through the Strait of Hormuz remained unclear after Iran attacked three ships on Wednesday, following the US decision last week to begin a sea blockade of Iranian ports. President Donald Trump has extended a ceasefire even as efforts to secure a truce in West Asia have stalled, adding another layer of uncertainty for energy markets and currency traders.