The Indian Rupee closed at a one-month low against the US Dollar on Tuesday, influenced by rising crude oil prices and continued foreign portfolio investment (FPI) outflows from the Indian equity markets. The currency fell by 35 paise, ending the day at 94.54 per US Dollar, compared to the previous close of 94.19. Intraday trading saw the Rupee hit a low of 94.5750.
Crude oil prices surpassed the $110 per barrel mark, amid reports of US President Donald Trump’s dissatisfaction with Iran’s proposed efforts to end the war. On the same day, FPI outflows from Indian equity markets were reported at approximately $223 million.
Amit Pabari, Managing Director of CR Forex Advisors, commented that while external global factors dominate the narrative, the domestic issue of foreign investor outflows also plays a significant role in applying pressure on the Rupee. “So far this year, FIIs have withdrawn over $19 billion from Indian equities. As money exits at this scale, dollars are being purchased, which naturally contributes to weakening the Rupee. There is no drama, no headlines—just consistent pressure,” he stated.
Pabari also noted that the Reserve Bank of India (RBI) is actively responding to this situation. The RBI’s recent instruction for banks to report offshore Rupee derivative exposures indicates a strategic shift towards better regulation. “This is not only about current volatility. It concerns future transparency. By monitoring the global footprint of Rupee transactions, the RBI aims to enhance price discovery and strengthen oversight,” he added.
Published on April 28, 2026.
