Rupee falls 6 paise to 95.42 against U.S. dollar in early trade
The Indian Rupee depreciated against the U.S. dollar as global oil prices rose due to geopolitical tensions in the Strait of Hormuz. Market analysts suggest the currency may face further pressure if oil prices remain elevated.
Why it matters
Fluctuations in the rupee and oil prices directly impact India's inflation, import costs, and overall economic stability.
The rupee fell 6 paise to 95.42 against the U.S. dollar in early trade on Wednesday (August 12, 2026), weighed down by the sharp rise in Brent crude toward $90/bbl, as hopes of a quick U.S.-Iran agreement and reopening of the Strait of Hormuz faded.
Forex traders said the principal driver behind the rise in Brent crude prices is the uncertainty over the Strait of Hormuz.
Markets are increasingly sceptical about a quick U.S.-Iran agreement, while reports of attacks on shipping have renewed concerns about physical supply, they said.
At the interbank foreign exchange, the rupee opened at 95.40 before slipping further to 95.42, down 6 paise from its previous close.
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