2026.07.0804:07:26UTC+00Rupee Falls as Geopolitical Risks Lift Oil

The Indian rupee weakened to around 95.1 per dollar, retreating after a brief period of stabilization as renewed tensions in the Middle East pushed up global oil prices and bolstered the US dollar. Brent crude rose above $76 per barrel after a 2.6% gain, extending the previous session’s 3% jump and stoking concerns about India’s import bill and inflation outlook.

Market sentiment deteriorated after the United States launched new strikes on Iran and revoked a license that had allowed Iranian oil sales, following attacks on three tankers in the Strait of Hormuz. At the same time, the yield on the 10-year US Treasury note climbed to 4.565%, its highest level in nearly a month, as higher energy prices intensified inflation worries. The US Dollar Index also edged above 101, adding further pressure on emerging-market currencies.

Earlier, the rupee had recorded its strongest one-day gain in more than three weeks, supported by dollar selling in the non-deliverable forwards (NDF) market, though it was still down about 1% over the previous week.