Rupee Tumbles as Oil Prices Surge

The Indian rupee fell to a new low against the U.S. dollar in early trade on Wednesday, August 12, 2026, due to concerns over oil prices.

The rupee opened at 95.40 before slipping further to 95.42, down 6 paise from its previous close of 95.36.

Forex traders pointed out that the sharp rise in Brent crude towards $90 per barrel was a key factor behind the decline in the rupee's value.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that markets are increasingly sceptical about a quick U.S.-Iran agreement and the reopening of the Strait of Hormuz.