The Indian rupee experienced a decline for the third consecutive session, depreciating by 39 paise to a provisional close of 93.83 against the US dollar on Wednesday. This downturn can be attributed to rising tensions surrounding US-Iran negotiations, which have heightened concerns over ongoing conflicts in West Asia, subsequently driving up crude oil prices.
Forex traders noted that significant selling pressure in domestic equity markets and continued foreign capital outflows contributed to the rupee’s drop. The currency commenced the day at 93.69 in the interbank foreign exchange market and reached an intraday low of 93.87, approaching the critical 94 mark, last seen on March 23.
This follows a notable drop on Tuesday, when the rupee weakened by 28 paise to finish at 93.44, marking a 25 paise decline on Monday. Prior to this downturn, the rupee had strengthened by 47 paise over the previous two sessions.
Anuj Choudhary, a Research Analyst at Mirae Asset ShareKhan, attributed the rupee’s decline to a sharp rise in crude oil prices and uncertainty surrounding the US-Iran talks. He projected that the rupee is likely to trade with a negative bias amidst pressures from foreign institutional investor (FII) outflows but indicated that a softening of the US dollar could mitigate a steep drop in the rupee’s value. The USD-INR spot exchange rate is anticipated to fall within a range of ₹93.60 to ₹94.20.
In addition, the dollar index, which measures the strength of the dollar against a basket of six currencies, fell by 0.07% to 98.15. Brent crude oil, a global benchmark, was reported to be 1.29% higher, trading at $99.75 per barrel.
Analysts remarked that crude prices surged following attacks on two ships in the Strait of Hormuz, further complicating efforts for a resolution to the ongoing conflicts. These developments coincided with the US’s recent seizure of an Iranian container ship.
In statements that heightened tensions, US President Donald Trump threatened military action against Iran if peace agreements are not reached by the expiration of a two-week ceasefire. Trump indicated that, should the ceasefire end without a resolution, he is prepared to resume attacks on Iran. “I expect to be bombing because I think that’s a better attitude to go in with,” he stated during an appearance on CNBC’s ‘Squawk Box.’
On the domestic equity front, the 30-share Sensex plummeted by 756.84 points, or 0.95%, closing at 78,516.49, while the Nifty index fell by 198.50 points, or 0.81%, to settle at 24,378.10. Data revealed that foreign institutional investors sold equities worth approximately ₹1,918.99 crore on Tuesday.
Published on April 22, 2026.
