Rupee falls amidst gulf tensions and rising oil prices

Mumbai: The Indian rupee fell half a percentage point against the US dollar on Wednesday as a fusillade of Iranian missiles targeted Kuwait and Bahrain, indicating the fragility of the truce in the Gulf region and pushing currency bears to buy into the greenback’s promise of safety. The rupee declined to 95.70, pressured by higher oil prices, versus its previous close of 95.27. Brent futures gained $2.3, or 2.4%, to $98.30 as tensions erupted in West Asia and peace talks between Tehran and Washington showed little progress, according to Reuters.

The rupee traded between 95.80 and 95.44 on Tuesday. “The currency opened weaker because of high oil prices and was able to appreciate during the day partly because of RBI intervention, and the news that government is finalising measures to attract foreign capital into the country,” said Ritesh Bhansali, deputy CEO, Mecklai Financial Services. The currency has weakened 0.9% in FY27 so far and declined nearly 11% in FY26.