The Indian rupee depreciated by 52 paise to settle at 95.48 against the US dollar on Wednesday, July 8, 2026, as rising global crude oil prices weighed on investor sentiment. The domestic currency opened weaker and remained under pressure throughout the session, tracking a sharp uptick in Brent crude oil futures.
Brent crude surges over 6%
Brent crude, the global oil benchmark, was trading higher by 6.16 per cent at USD 78.73 per barrel in futures trade. The spike in oil prices raised concerns about higher import costs for India, which is a major crude importer, thereby putting additional strain on the rupee. Analysts attributed the rise to supply constraints and geopolitical tensions in key producing regions.
Market impact and outlook
The rupee's decline marks its weakest closing level in recent weeks, reflecting persistent pressure from elevated crude prices and a strong US dollar in global markets. According to forex traders, the local unit faced selling pressure from importers and banks, while a lack of significant dollar inflows further exacerbated the fall. The Reserve Bank of India's intervention was limited, as the central bank likely aimed to let the currency find its equilibrium.
Meanwhile, domestic equity markets ended mixed, with the BSE Sensex slipping 0.2% while the Nifty 50 held steady, indicating cautious investor sentiment. The weakness in the rupee is expected to impact sectors reliant on imported raw materials, such as oil refiners and pharmaceutical companies, while export-oriented industries may benefit from a weaker currency.
