Indian rupee fell to 94.81 as oil prices hit $100 per barrel

The Indian rupee declined 33 paise to close at 94.81 per dollar, marking its steepest drop in over a month. Crude oil prices reached nearly $100 per barrel after fresh militant strikes occurred in the Strait of Hormuz. The rupee traded within a range between 94.51 and 94.89 during Tuesday's session. Traders indicated that pressure came from an external event rather than domestic speculation, though traders noted the central bank likely sold dollars moderately. Anil Bhansali, head of treasury at Finrex Treasury Advisors, stated the rupee initially strengthened but later depreciated as rising oil prices increased dollar demand from energy companies. He explained that the Reserve Bank of India utilized state-run banks to intervene near the 94.89 level, preventing the currency from falling past 94.90. Other emerging market currencies, including the Thai baht and South African Rand, also slipped approximately 0.4%. Market participants expect the rupee to trade between 94.50 and 95.25 on Wednesday.