Rupee Falls on Rising Oil Prices, Dollar Demand

2026-10-23 03:55 By Mariene Camarillo 1 min. read

The Indian rupee fell to around 94.8 per dollar, retreating from multi-week highs as rising oil prices and a global flight to safety weighed on the currency, while persistent dollar demand added to downward pressure.

Brent crude climbed to nearly USD 115 a barrel amid concerns over supply disruptions following Houthi attacks on Saudi Arabia, raising India’s import costs and potentially prompting further hedging by importers.

The decline ended the rupee’s eight-session rally, which had lifted the currency to a more than six-week high near 94.30.

Meanwhile, market participants had digested preliminary economic indicators showing India's manufacturing PMI eased to 54.9 in October from 55.1 in September, while the services PMI rose to 56.2 from 55.2, marking a four-month high.

Although the RBI’s recent foreign-exchange measures have curbed dollar demand and provided some relief, underlying pressures from elevated oil prices and capital outflows continue to threaten the rupee’s recovery.



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Rupee Falls on Rising Oil Prices, Dollar Demand
The Indian rupee fell to around 94.8 per dollar, retreating from multi-week highs as rising oil prices and a global flight to safety weighed on the currency, while persistent dollar demand added to downward pressure. Brent crude climbed to nearly USD 115 a barrel amid concerns over supply disruptions following Houthi attacks on Saudi Arabia, raising India’s import costs and potentially prompting further hedging by importers. The decline ended the rupee’s eight-session rally, which had lifted the currency to a more than six-week high near 94.30. Meanwhile, market participants had digested preliminary economic indicators showing India's manufacturing PMI eased to 54.9 in October from 55.1 in September, while the services PMI rose to 56.2 from 55.2, marking a four-month high. Although the RBI’s recent foreign-exchange measures have curbed dollar demand and provided some relief, underlying pressures from elevated oil prices and capital outflows continue to threaten the rupee’s recovery.
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Rupee Hits 6-Week High on IPO Inflows
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