The rupee depreciated 21 paise to close at 95.28 (provisional) against the US dollar on Wednesday, weighed down by a stronger US dollar and surging crude oil prices.
Forex traders said the rupee is expected to trade with a slight negative bias on a strong dollar and positive US Treasury yields. Elevated crude oil prices may also pressurise the rupee.
In the interbank foreign exchange market, the rupee opened at 95.01 against the dollar, then lost ground to touch an intra-day low of 95.29 and finally settled for the day at 95.28 (provisional), registering a decline of 21 paise over its previous close.
On Tuesday, the rupee appreciated 8 paise to close at 95.07 against the US dollar.
“Elevated oil prices remain a source of underlying dollar demand, while foreign investment flows, the global dollar and the RBI’s market operations will influence the pace and direction of currency moves,” said Anindya Banerjee, Head of Commodity and Currency Research, Kotak NEO.
Banerjee further said the Fed remains the immediate common trigger across these markets. “A firmer-than-expected message on December could support the dollar and yields, putting pressure on precious metals and emerging-market currencies,” he said.
“For India, the combination of elevated oil prices and high US yields remains particularly relevant because it affects both import-related dollar demand and international capital flows,” Banerjee added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.08 per cent at 102.40.
Brent crude, the global oil benchmark, was trading higher by 1.06 per cent at $115.08 per barrel in futures trade.
Traders said any intervention by the Reserve Bank of India may support the rupee at lower levels. Investors will watch out for the Federal Open Market Committee (FOMC) decision, they added.
On the domestic equity market front, Sensex declined 352.64 points to settle at 73,246.03, and Nifty fell 50.90 points to 22,698.85.
Foreign Institutional Investors (FIIs) bought equities worth ₹4,240.39 crore on a net basis on Tuesday, according to exchange data.
Published on October 28, 2026
