Rupee Weakens 20 Paise to Open at 94 Per US Dollar Amid Crude Oil Price Surge

Indian Rupee Continues Slide Amid Surging Oil Prices and Stronger US Dollar

The Indian rupee opened lower on Thursday, April 23, extending its slide under pressure from surging crude oil prices and a stronger US dollar. The rupee opened 20 paise lower at 94 per US dollar as against its previous close of 93.7950. This decline marks the currency's third consecutive session, with losses nearing 1% this week.

The rupee has slipped well past its recent highs near 92.50, a level reached largely on the back of support measures by the Reserve Bank late last month and again in April. According to experts, the primary source of pressure on the rupee is the Strait of Hormuz, where recent attacks on container vessels have rekindled concerns about supply. This situation has driven Brent crude prices closer to the $100 per barrel mark.

Brent Crude Oil Price Rises 1.30% to $103.23 a Barrel

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Brent crude oil prices rallied after Iran vowed not to reopen the Strait of Hormuz so long as a US naval blockade remained in place. Brent crude oil price rose 1.30% to $103.23 a barrel, while the US West Texas Intermediate (WTI) crude futures rallied 1.45% to $94.31.

The rupee's decline is attributed not to domestic factors but rather to escalating global uncertainties. As a nation that heavily relies on oil imports, India faces a direct increase in its import expenses and dollar demand due to the rising crude prices, which negatively impacts the currency.

US Dollar Index Remains Stable Around 98

The US dollar index remains stable around 98, contributing to additional pressure on the rupee. Anticipations of interest rate reductions by the Federal Reserve have diminished as geopolitical uncertainties keep inflation risks present, according to experts.

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The global risk appetite has also become more cautious, with emerging market currencies and stocks facing pressure. In India, a total outflow of ₹2,078 crore from equities indicates this shift.

According to Amit Pabari, MD, Research Team, CR Forex Advisors, technically, USD/INR has built a strong base in the 92.80–93.00 zone, which is now acting as a cushion. However, with uncertainty still dominating the narrative, the bias remains tilted upward. A gradual move toward 94.00–94.20 cannot be ruled out unless there is a clear breakthrough on the geopolitical front.