The rupee depreciated 41 paise to close at 94.56 (provisional) against the U.S. dollar on Tuesday (April 28, 2026), as elevated crude oil prices and unabated foreign capital outflows amid rising geopolitical uncertainties dented investor sentiments.

Forex traders said the rupee has already weakened quite sharply, factoring in the likely widening of the Current Account Deficit (CAD) and volatile capital flows. Moreover, persistent foreign fund outflows weighed on the rupee, as so far this year, FIIs have pulled out over $19 billion from Indian equities.

At the interbank foreign exchange market, the rupee opened at 94.35 against the U.S. dollar, then lost ground and touched an intraday low of 94.58 against the U.S. dollar, and finally settled for the day at 94.56 (provisional), registering a fall of 41 paise over its previous close.

On Monday (April 27, 2026), the rupee settled with a gain of just one paisa, closing at 94.15 against the U.S. dollar. “The primary pressure on the rupee stems from weak capital inflows. Net FDI inflows have been subdued, while FPI flows have been affected by elevated global uncertainty, relatively high equity valuations, and the absence of a strong AI investment narrative in India,” said Rajani Sinha, Chief Economist, CareEdge Ratings.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.245 at 98.73. Brent crude, the global oil benchmark, was trading higher by 2.62% at $111.07 per barrel in futures trade.

“There is a lot of uncertainty around the West Asia conflict. Even if the conflict eases in the near term, we expect crude oil prices to average around $85–90 per barrel in FY27. Under this baseline, the rupee is likely to remain in the 92–93 range on average in FY27,” Ms. Sinha added.

On the domestic equity market front, Sensex dropped 416.72 points to settle at 76,886.91, while the Nifty declined 97 points to 23,995.70. Foreign Institutional Investors offloaded equities worth ₹1,151.48 crore on Monday (April 27), according to exchange data.

“The rupee appears somewhat undervalued based on interest rate differentials and REER indicators. However, in a downside scenario where the conflict escalates and crude oil prices rise further, there would be further weakening pressure on the rupee,” Ms. Sinha said.

The rupee gained 17 paise to trade at 91.41 against the U.S. dollar in early deals on Friday (January 23, 2026), as investor sentiments improved after U.S. President Donald Trump stepped back from tariff threats against Europe linked to Greenland, easing immediate trade-war fears.

Forex traders said Mr. Trump’s softer rhetoric reduced near-term geopolitical anxiety. Moreover, as investors’ risk appetite improved, the dollar corrected, allowing emerging market currencies — including the rupee — to recover slightly, they said.

Read | Is the falling rupee a cause for alarm? 

At the interbank foreign exchange, the rupee opened at 91.45 then gained ground to trade at 91.41 against the dollar, up 17 paise from its previous close.

On Thursday (January 22, 2026), the rupee rebounded from its all-time low levels and ended with a gain of 7 paise at 91.58 against the U.S. dollar.

Forex traders, however, said the currency remains under severe pressure from persistent foreign fund outflows amid heightened global geopolitical uncertainties.

Read | With sharp fall, Rupee is Asia’s worst performing currency, may slide to 90, say analysts 

The pending trade agreement with the U.S. remains a key stabilising factor. Until the geopolitical risk eases and the trade deal materialises, the rupee is likely to remain vulnerable to external shocks, they said.

“At current levels, a large portion of global risk appears to be priced into the rupee. This opens the door for a phase of consolidation and a possible partial recovery if risk sentiment stabilises.

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“The 92.00 level remains a strong resistance, while sustained RBI support could guide USD/INR back toward the 90.50–90.70 zone in the near term,” CR Forex Advisors MD Amit Pabari said in a research note.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.01% higher at 98.36.

Brent crude, the global oil benchmark, was trading 0.87% higher at $64.62 per barrel in futures trade.

On the domestic equity market front, Sensex fell 25.99 points to 82,281.38 in initial trade, while the Nifty rose 10.55 points to 25,300.45.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,549.80 crore on Thursday (January 22, 2026), according to exchange data.