Indian rupee drops 44 paise to 94.82 against US dollar as crude oil surges

The Indian rupee ended an eight-day winning streak on Thursday, dropping 44 paise to settle at 94.82 against the US dollar as surging global crude oil prices offset strong foreign institutional capital inflows into the domestic market.

The currency opened at 94.47 per dollar before touching an intra-day low of 94.94, reversing Wednesday's gains when it had jumped 53 paise to 94.38. The sudden downturn followed a 3% surge in Brent crude, the international oil benchmark, which reached $112.33 per barrel after Yemeni Houthi attacks on Saudi Arabian energy infrastructure raised concerns over West Asian crude supplies.

Despite the pressure from elevated oil prices, robust domestic fundamentals and defensive currency measures by the Reserve Bank of India helped cushion the downside. Domestic equity markets continued to attract substantial foreign investor demand, highlighted by heavy subscription for the Jio Platforms initial public offering. The offering reached 3.47 times total subscription by mid-morning on its second day, led by qualified institutional buyers who subscribed 9.42 times their allocated portion.

Market indicators overview

Domestic benchmark equity indices tracked global market weakness as energy risks mounted. The BSE Sensex fell 460.30 points to end at 73,249.39, while the NSE Nifty dropped 123.70 points to 22,687.65.

Softer US Treasury yields and a 0.17% dip in the dollar index to 101.60 provided additional structural support to the rupee. Market analysts noted that near-term dollar liquidity in India remains healthy, supported by ongoing foreign capital inflows and long-term economic stability, even as global energy volatility remains a monitored risk factor.