Rupee Slips To 94.81 Against U.S. Dollar Amid Elevated Crude Oil Prices

The rupee depreciated 13 paise to 94.81 against the U.S. dollar in early trade on April 29 as higher global crude oil prices and continued geopolitical tensions kept pressure on the domestic currency.

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At the interbank foreign exchange market, the rupee opened at 94.79 against the dollar and later weakened further to 94.81, compared with the previous close of 94.68 on April 28.

The factors contributing to this price drop include higher crude oil prices, end-of-month dollar buying activity, and investor preference for safer investments during uncertain times.

Crude Oil Holds Above $111

Brent crude, the world’s benchmark for oil, was trading at $111.03 per barrel in futures markets, declining by 0.21%. Oil prices have remained elevated due to disruptions in shipping movement through the Strait of Hormuz and ongoing tensions involving the U.S. and Iran.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said crude oil prices remained firm as there was no resolution to the U.S.-Iran conflict, and shipping movement through the Strait of Hormuz continued to remain disrupted.

The dollar index, which measures the U.S. currency against six major global currencies, was trading marginally higher at 98.67.

Focus On U.S. Federal Reserve Meeting

Market participants are also tracking the upcoming U.S. Federal Reserve policy decision for cues on interest rates and monetary policy direction.

According to forex market experts, while interest rates are expected to remain unchanged, investor focus will remain on the Federal Reserve’s commentary regarding inflation and economic conditions.

Amit Pabari, Managing Director at CR Forex Advisors, said the rupee continues to trade within a broad range influenced by oil prices, global uncertainty, and capital flows. He noted that the 94.50–94.80 range remains a resistance zone for the domestic currency.

UAE Exit From OPEC In Focus

The United Arab Emirates, on April 28, said it would leave the Organization of the Petroleum Exporting Countries (OPEC) effective May 1, adding another development for global oil markets to monitor.

On the domestic equity front, the Sensex rose 358.92 points to 77,245.83 in early trade, while the Nifty gained 101.2 points to trade at 24,096.90.

According to exchange data, foreign institutional investors sold equities worth ₹2,103.74 crore on April 28.

Separately, official data released on Tuesday showed India’s industrial production growth slowed to 4.1% in March, compared with 3.9% growth recorded in the same month last year.

Currency markets are expected to remain sensitive to crude oil prices, global geopolitical developments, and the outcome of the U.S. Federal Reserve meeting later this week.