ewsba.se
The Indian rupee opened 4 paise weaker at 94.95 against the US dollar on Monday, 4 May, amid a pullback in oil prices after the U.S. said it would begin efforts to free ships stranded in the Strait of Hormuz. Market participants are also closely tracking developments in ongoing U.S.–Iran negotiations.
The currency had settled at 94.91 on Thursday, after touching an all-time low of 95.33. Indian financial markets were closed on Friday, 30 April.
Brent crude for delivery in July fell to about $105.50 per barrel during the Asian trading session after U.S. President Donald Trump announced on Sunday that the U.S. would intervene to assist vessels stranded in the Strait of Hormuz, labelling the action as a humanitarian measure for neutral countries, though he did not elaborate further.
Nevertheless, analysts noted that limited progress on a broader peace agreement might limit the potential decline in oil prices, as negotiations between the U.S. and Iran continue, with both parties evaluating each other's responses. Brent crude was most recently observed trading close to $108 per barrel.
The rupee has been under sustained pressure in recent sessions, dropping nearly 2% over the last eight days.
Experts suggest that the recent fluctuations in the rupee are influenced by a complex interplay of global and domestic factors rather than a single cause. Although U.S. economic indicators have consistently shown strength—with ongoing growth and historically low unemployment claims—they have not translated into sustained strength in the dollar.
Analysts emphasise that the primary factor is the divergence in global monetary policies, as central banks such as the Bank of England, the European Central Bank, and the Bank of Japan are expected to tighten policy, whereas the Federal Reserve may maintain its current stance.
Simultaneously, potential actions by Japanese officials to bolster the yen have introduced volatility, unintentionally easing some of the strain on emerging-market currencies such as the rupee. On the home front, analysts indicate that markets are keeping a close eye on possible measures from the Reserve Bank of India, which has intervened in the past to limit significant currency depreciation.
According to Amit Pabari, MD, Research Team at CR Forex Advisors, the rupee is currently at a critical level—not just technically, but also psychologically.
He noted that the 95.20–95.30 range is likely to act as a strong near-term resistance zone.
Given the current market setup, Pabari sees a high probability of a rupee pullback towards the 94.20–93.80 levels.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.