13 july 2026 Punjab Khabarnama Bureau : The Indian rupee depreciated by 39 paise to 95.77 against the U.S. dollar in early trade on Tuesday, pressured by rising global crude oil prices, a stronger U.S. dollar, and heightened geopolitical tensions in West Asia.
Currency traders said the rupee came under pressure as investors turned cautious amid uncertainty in global markets. Concerns over escalating tensions in the Middle East and their potential impact on oil supplies pushed crude prices higher, increasing demand for the U.S. dollar.
Crude Oil Prices Weigh on Rupee
India imports nearly 85% of its crude oil requirements, making the domestic currency highly sensitive to fluctuations in global oil prices. Higher crude prices increase the country’s import bill, widen the current account deficit, and put downward pressure on the rupee.
Analysts noted that any sustained rise in energy prices could further impact inflation and economic growth.
Strong Dollar Adds Pressure
The strengthening of the U.S. dollar against major global currencies also contributed to the rupee’s decline. Investors sought safe-haven assets amid global uncertainty, boosting demand for the greenback.
Market participants are also watching upcoming U.S. economic data and expectations regarding future interest rate decisions by the Federal Reserve.
Stock Market Weakness
Domestic equity markets also opened lower, reflecting cautious investor sentiment. Weakness in the stock market often leads to foreign fund outflows, which can further weigh on the rupee.
Foreign institutional investor (FII) activity and global risk sentiment are expected to remain key drivers of the currency in the coming sessions.
Outlook
Forex experts believe the rupee’s near-term movement will depend on global crude oil prices, geopolitical developments, U.S. dollar strength, and capital flows into Indian markets. While volatility may persist, interventions by the Reserve Bank of India (RBI), if required, could help contain excessive fluctuations.