Rupee Opens at ₹94.40 Against Dollar. Here's Why That's Still Not Great News!
Rupee opens at ₹94.40 against dollar on Monday as rising crude oil prices and global tensions kept pressure on the currency.
By Srajan Agarwal | 2026-05-11T11:19:15.877571+05:30
The Indian Rupee opens at ₹94.40 against dollar on Monday morning, remaining under pressure amid high crude oil prices and global uncertainty. While the currency has not seen a sharp fall today, it has also failed to show a strong recovery. At the beginning of the year, one dollar was around ₹90, which means the rupee has weakened by nearly 5% in about four months. For Indians paying in dollars — whether for foreign education, international travel, imported products or business purchases — this directly translates into higher costs.
Rupee Opens at ₹94.40 Against Dollar: Why It Matters for You
Key Points
- The Indian rupee opened at ₹94.40 against the US dollar on Monday morning.
- The currency is not falling sharply today, but it is also not showing any real recovery.
- At the beginning of this year, one dollar was around ₹90.
- This means the rupee has weakened by nearly 5% in about four months.
- For anyone spending in dollars, this directly means higher costs.
Why Is the Rupee Under Pressure?
The biggest reason is oil.
India imports nearly 85% of the crude oil it uses. So whenever global crude oil prices rise, India has to spend more dollars to buy the same amount of oil.
Right now, Brent crude is trading around 04 per barrel.
That means:
- India needs more dollars to pay for oil
- Demand for dollars rises
- The rupee comes under pressure
- Imported goods become costlier
- Inflation risks increase
This is the chain reaction currently hurting the rupee.
Also Read: Rupee Gains as Oil Prices Slide on Hopes of U.S.-Iran Peace Deal
What Is Currently RBI Doing?
The Reserve Bank of India has been selling dollars from its foreign exchange reserves to support the rupee.
This helps control sharp falls and prevents panic in the currency market. Because of RBI’s intervention, the rupee has not collapsed further.
But there is a limit to how long the RBI can keep doing this.
If the central bank keeps selling dollars for too long, it may start reducing reserves that India needs for other economic priorities.
The lowest the rupee fell this year was on May 4, when it hit ₹95.27 to the dollar — a record low. That happened because Iran fired at oil facilities in the Strait of Hormuz, a crucial shipping route, and oil prices spiked. By mid-week, there were reports of possible peace talks, oil dropped a bit, and the rupee recovered some ground.
Also Read: RBI MPC Holds Repo Rate at 5.25%: Cautious Optimism Amid Global Uncertainty
Most forex analysts expect the rupee to stay in the ₹93–₹96 range for the rest of May. A proper recovery will only come if either the West Asia conflict winds down and oil falls, or the RBI steps in more aggressively. Neither looks guaranteed right now.
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