Rupee falls 57 paise to 96.20 against dollar; further weakness likely, say analysts
Rupee fell 57 paise to trade at 96.20 level against the greenback. With this, the domestic currency has depreciated 11 per cent in the past one year, Bloomberg data compiled by Business Today suggested.
- Jul 14, 2026,
- Updated Jul 14, 2026 4:09 PM IST
Rupee on Tuesday breached 96 level against the US dollar, thanks to surging crude oil prices, persistent demand for the greenback, and heightened geopolitical uncertainty.
By 3.30 pm, the rupee had touched an intraday low of 96.24 and was later trading 57 paise lower at 96.20 against the US dollar. With this, the domestic currency has depreciated 11 per cent in the past one year, Bloomberg data compiled by Business Today suggested. The latest round of weakness in the local currency comes in the backdrop of ongoing exchange of missiles between the United States and Iran, intensifying concerns over global inflation and energy security.
Despite an improved outlook for capital flows—supported by stronger inflows into non-resident deposits, a pickup in offshore borrowing, and foreign investors turning net buyers in domestic equities, the rebound in global oil prices has clouded the near-term prospects for rupee appreciation, said Radhika Rao, Senior Economist & Executive Director, DBS Bank.
In the case of rupee's Tuesday move, Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities said: "Rupee traded sharply weaker, declining around 0.55 per cent to 96.20, as a fresh 4 per cent surge in Brent crude above $86 per barrel significantly increased pressure on the domestic currency. A firm Dollar index above 101 further added to the downside, with higher energy prices emerging as the key driver of rupee weakness."
Trivedi said market participants will now closely monitor the US CPI inflation data, which could influence expectations for the Federal Reserve's policy path and determine the next move in the dollar.
"Technically, the rupee is expected to remain weak in the 95.75–96.50 range, with crude oil prices, FII flows, and global risk sentiment continuing to drive near-term direction," Trivedi said.
Weakness in the rupee was one of the reasons why domestic equities settled lower on Tuesday. The balance of payment vulnerability and the potential impact on the rupee can again become issues that may impact the stock market adversely, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments in a post market note.
Rupee on Tuesday breached 96 level against the US dollar, thanks to surging crude oil prices, persistent demand for the greenback, and heightened geopolitical uncertainty.
By 3.30 pm, the rupee had touched an intraday low of 96.24 and was later trading 57 paise lower at 96.20 against the US dollar. With this, the domestic currency has depreciated 11 per cent in the past one year, Bloomberg data compiled by Business Today suggested. The latest round of weakness in the local currency comes in the backdrop of ongoing exchange of missiles between the United States and Iran, intensifying concerns over global inflation and energy security.
Despite an improved outlook for capital flows—supported by stronger inflows into non-resident deposits, a pickup in offshore borrowing, and foreign investors turning net buyers in domestic equities, the rebound in global oil prices has clouded the near-term prospects for rupee appreciation, said Radhika Rao, Senior Economist & Executive Director, DBS Bank.
In the case of rupee's Tuesday move, Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities said: "Rupee traded sharply weaker, declining around 0.55 per cent to 96.20, as a fresh 4 per cent surge in Brent crude above $86 per barrel significantly increased pressure on the domestic currency. A firm Dollar index above 101 further added to the downside, with higher energy prices emerging as the key driver of rupee weakness."
Trivedi said market participants will now closely monitor the US CPI inflation data, which could influence expectations for the Federal Reserve's policy path and determine the next move in the dollar.
"Technically, the rupee is expected to remain weak in the 95.75–96.50 range, with crude oil prices, FII flows, and global risk sentiment continuing to drive near-term direction," Trivedi said.
Weakness in the rupee was one of the reasons why domestic equities settled lower on Tuesday. The balance of payment vulnerability and the potential impact on the rupee can again become issues that may impact the stock market adversely, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments in a post market note.