Indian rupee weakens to 94.95 as oil prices surge amid geopolitical tensions

The rupee opened at 94.80 against the US dollar on Wednesday morning before slipping to 94.95, marking a loss of 21 paise from Tuesday's close of 94.74. The decline follows a 18-paise drop recorded in the previous session, signalling sustained weakness in the domestic currency.

Surging crude oil prices remained the primary headwind for the rupee, with Brent crude approaching the $100-per-barrel mark as tensions between the United States and Iran intensified. Higher oil prices typically pressure India's currency given the country's significant dependence on energy imports, which widens the current account deficit.

According to market analysts, the rupee opened with a negative bias as geopolitical uncertainties weighed on investor sentiment. However, weakness in the US dollar provided a cushion against steeper losses, with forex traders noting that global currency movements offered some respite to the local unit at lower levels.

Looking ahead, the rupee is expected to trade under pressure as crude oil prices remain elevated and geopolitical risks persist. Analysts cautioned that weakness in global equity markets could further strain the currency, though continued dollar softness may limit downside movements. Market participants will remain focused on developments in US-Iran relations and crude oil price trajectories in the coming sessions.