Rupee Opens Lower Against U.S. Dollar As Crude Price Surges Above $100 Per Barrel

The Indian rupee opened 6 paise weaker against the U.S. dollar on Friday after the global crude price climbed above $100 per barrel, increasing concerns over India’s oil import bill. The domestic currency opened at 96.63 against the U.S. dollar, compared with its previous close of 96.57.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The rupee continues to trade close to its record low of 96.96 against the U.S. dollar, which it touched on May 20, 2026. The latest decline comes amid higher international oil prices and firm U.S. bond yields, both of which have weighed on emerging market currencies.

Higher Crude Price Adds Pressure On Rupee

According to Finrex, the rupee is expected to remain near its record low as the crude price crossed the $100-a-barrel mark. The firm also noted that the dollar index stood at 101.38, while the yield on the benchmark 10-year U.S. Treasury rose to 4.704%, adding support to the U.S. currency.

Higher crude oil prices generally increase India’s import costs because the country imports a large share of its crude oil requirements. This often leads to higher demand for dollars, which can put pressure on the rupee.

Finrex also stated that intervention by the Reserve Bank of India (RBI) could help limit further depreciation in the domestic currency.

Asian Currencies Trade Mixed

Most Asian currencies traded lower against the U.S. dollar during early trade. The South Korean won outperformed regional peers, gaining 0.634%.

The Japanese yen and Thai baht also posted marginal gains of 0.024% and 0.021%, respectively.

Among the weaker currencies, the Taiwan dollar declined 0.139%, followed by the Philippine peso, down 0.128%. The Malaysian ringgit fell 0.127%, while the Indonesian rupiah weakened 0.106%. The Chinese renminbi slipped 0.024%, and the Singapore dollar edged down 0.008%.

Dollar Supported By Higher Treasury Yields

The U.S. dollar stayed strong even as bond yields edged up on account of rising oil prices and worries about global trade disputes. Bond yield increases typically lead to an increase in demand for assets denominated in dollars.

According to Finrex, exporters may consider selling dollars during periods of intraday weakness in the rupee, while importers could continue purchasing dollars on declines, supported by the possibility of RBI intervention.

Currency markets are expected to remain sensitive to movements in the crude price, U.S. Treasury yields and global risk sentiment. Market participants will also monitor any action by the RBI as the rupee trades close to its weakest level on record.