Rupee Falls 33 Paise To 94.58 Against U.S. Dollar Amid Oil Price Surge

The Indian rupee opened weaker at 94.58 against the U.S. dollar on Friday, May 8, declining 33 paise from the previous close amid renewed volatility in global crude oil prices.

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The domestic currency came under pressure after crude oil prices rebounded sharply following fresh tensions between the U.S. and Iran. Brent crude traded near $101.50 per barrel after slipping to around $96 in the previous session.

Oil Prices Rise On Fresh Middle East Tensions

Global oil prices moved higher after reports of renewed hostilities between the U.S. and Iran raised concerns over the stability of the recently announced ceasefire.

Iran accused the U.S. of violating the month-long ceasefire agreement, while the U.S. said it carried out retaliatory strikes after Iranian forces allegedly targeted American naval vessels moving through the Strait of Hormuz on Thursday.

Despite the escalation, U.S. President Donald Trump said the ceasefire agreement remained in place and added that Washington was awaiting Tehran’s response to a fresh peace proposal.

The Strait of Hormuz remains a key global oil transit route, and continued tensions in the region have increased concerns over supply disruptions in international energy markets.

Crude Oil Volatility Pressures Rupee

India’s high dependence on imported fuel exposes the Indian rupee to movements in crude oil prices. Higher crude prices increase India’s import bill and raise demand for dollars from oil marketing companies.

According to market data, Brent crude has remained above the $100-per-barrel level after recent geopolitical developments triggered renewed uncertainty in commodity markets.

Currency market transactions also indicated the sustained demand for the U.S. dollar from importers and oil refineries. Importers engaged in hedging activities due to the expectation of further fluctuations in the rupee.

Measures Taken by RBI and Currency Fluctuations

The Reserve Bank of India has taken steps during the recent sessions to provide liquidity and stabilise the national currency. However, the rupee has continued to witness fluctuations due to movements in global oil prices and foreign exchange demand.

The rupee had recovered during the previous two trading sessions after crude prices briefly eased on expectations of progress in diplomatic talks between the U.S. and Iran.

Friday’s opening level of 94.58 marked a reversal in that trend as global risk sentiment weakened again following the latest developments in West Asia.

Currency markets are expected to track further updates related to the U.S.-Iran negotiations, movement in crude oil prices, and demand for dollars from importers during the trading session.