Rupee Gives Up Gains, Falls 57 Paise From Day’s High As Crude Oil Remains Above $110

Last Updated:October 22, 2026, 2:40 PM IST

The decline in the rupee comes as elevated crude oil prices and geopolitical tensions continue to pose risks to the domestic currency.

Rupee Vs Dollar.

The Indian rupee came under pressure after its recent sharp recovery, with the currency falling 57 paise from the day’s high, as elevated crude oil prices and geopolitical tensions continued to pose risks to the domestic currency.

Brent crude futures climbed towards $111 per barrel on Thursday amid renewed concerns over supply disruptions in West Asia. Higher oil prices are a key risk for the rupee, given India’s dependence on imported crude, as they increase the country’s import bill and demand for US dollars.

The pullback comes after the rupee staged a strong recovery over the past eight sessions, supported by foreign currency inflows linked to the Jio Platforms initial public offering (IPO), Reserve Bank of India (RBI) measures to curb speculative dollar demand and suspected central bank intervention.

The currency gained around 2.45% over the eight-session rally through Wednesday, October 21, when it closed at 94.47 against the US dollar, its strongest level since June 25.

However, the recent rally has faced headwinds from rising crude prices and persistent geopolitical uncertainty. The rupee’s sharp appreciation has also left it technically overbought, increasing the possibility of profit-taking after the sustained gains, Reuters reported on Thursday.

The broader outlook remains dependent on the trajectory of crude oil prices, foreign capital flows and the effectiveness of the RBI’s measures in moderating dollar demand. A sustained rise in oil prices could revive pressure on the rupee, even as IPO-related inflows and central bank intervention provide near-term support.

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What caused the Indian rupee to fall 57 paise from its day’s high?

The Indian rupee fell 57 paise from its day’s high due to elevated crude oil prices remaining above $110 per barrel and persistent geopolitical tensions in West Asia.

How did the rupee perform prior to its recent pullback?

Before the pullback, the rupee staged a strong eight-session recovery rally, gaining about 2.45% to close at 94.47 against the US dollar on Wednesday, October 21, which was its strongest level since June 25.

What factors supported the rupee during its recent eight-session rally?

The rupee’s recent rally was supported by foreign currency inflows linked to the Jio Platforms IPO, measures taken by the Reserve Bank of India to curb speculative dollar demand, and suspected central bank intervention.

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