Indian Rupee Slides Further, Opening at 94.22 Amid Rising Brent Crude Prices

Indian Rupee Declines for Fifth Consecutive Session Amid Rising Crude Prices

The Indian rupee continued its downward trend on April 24, falling 11 paise against the dollar, marking its fifth consecutive losing session. The rupee opened at 94.22 against the dollar, down from its previous close of 94.11. This week alone, the rupee has lost over 1 percent, with no signs of respite in sight.

The benchmark Brent crude prices have been a major contributor to the rupee's decline, rising to $106 a barrel. This represents a gain of around 1 percent overnight and nearly 11 percent this week. The Strait of Hormuz has become a major point of contention between the United States and Iran, with reports of Iran mining the energy chokepoint and US President Donald Trump issuing a "shoot and kill" order, escalating demining activity.

The Reserve Bank of India's (RBI) decision to ease restrictions on the offshore non-deliverable forwards (NDF) market has also had an impact on the rupee. Traders say that the RBI has been intermittently intervening in the market to prevent any sharp depreciation in the currency.

Read also: Centre Unveils Rs 5,000 Crore Incentive to Boost Mining Reforms Across States

India's private sector business activity showed signs of improvement in April, with both manufacturing and services sectors recovering from their March lows. However, the Iran war, which has disrupted fuel supplies, continued for the second consecutive month. According to Pranjul Bhandari, chief India economist at HSBC, the strong start to FY27 is likely due to front-loading production, with consumers seeking to purchase goods before retail prices are raised significantly.

Elevated crude prices remain a major concern for India, which meets 85 percent of its fuel needs through imports. Higher prices add to the import bill and strain the current account, weighing heavily on the rupee.