Rupee slides 49 paise to 93.32 as crude jumps on Trump’s Hormuz blockade threat

The rupee depreciated 49 paise to 93.32 against the US dollar in early trade on Monday, pressured by surging crude oil prices , a firm US dollar , and escalating geopolitical tensions in West Asia following US President Donald Trump’s threat to blockade Iranian ports near the Strait of Hormuz.

Forex traders said uncertainty surrounding the Strait of Hormuz after inconclusive Iran–US peace talks pushed global oil prices sharply higher and weakened investor sentiment. The rupee was also among the weakest emerging market currencies , as most EM units declined amid fears of supply disruptions linked to the Hormuz crisis.

At the interbank foreign exchange market, the rupee opened at 93.30 against the greenback and slipped further to 93.32 in early deals, marking its steepest fall in about two weeks . On Friday, the domestic unit had settled 32 paise lower at 92.83 against the US currency.

Currency dealers said dollar supply weakened after banks finished selling their long dollar positions on April 10 , removing a key factor that had recently supported the rupee.

The dollar index , which measures the greenback against six major currencies, rose 0.38 per cent to 98.81 .

Global oil prices surged, with Brent crude jumping over 7 per cent to about USD 102 per barrel after the US announced a blockade of Iranian ports, raising concerns over shipping through the Strait of Hormuz.

Pressure on the currency also came from capital outflows, with about USD 6.5 billion leaving Indian markets in April so far , after USD 13.6 billion in outflows in March .

Domestic equities reflected the negative sentiment, as the BSE Sensex plunged 1,600.73 points to 75,949.52 , while the Nifty fell 468.85 points to 23,581.75 in morning trade.

Exchange data showed foreign institutional investors bought equities worth Rs 672.09 crore on Friday , while the Reserve Bank of India said forex reserves rose USD 9.063 billion to USD 697.121 billion in the week ended April 3.

The Asian Development Bank warned that a prolonged Middle East conflict could affect India’s macroeconomic outlook through higher energy costs, trade disruptions and weaker remittance inflows. It projected India’s GDP growth at 6.9 per cent this fiscal year and 7.3 per cent next year .