USD vs INR, May 8: Rupee Snaps Two-day Rally, Falls 21 to 94.47 Paise Against Dollar As Oil Jump Dents Sentiment
By HDFC SKY | Updated at: May 8, 2026 01:37 PM IST

Mumbai, May 8:The rupee weakened sharply against the U.S. dollar on Friday as renewed hostilities between the United States and Iran pushed crude oil prices higher, triggering fresh concerns over India’s inflation and import bill outlook.
The rupee was trading 21 paise lower at 94.47 against the dollar at the time of writing, after falling 33 paise at open earlier in the session. The local currency touched an intraday low of 94.59 and a high of 94.39 amid volatile trade.
Rally Snaps
The decline snapped the rupee’s recent recovery rally after the currency had gained over the previous two sessions on hopes of easing geopolitical tensions in the Middle East.
Fresh military exchanges between the U.S. and Iran, however, reignited fears of disruption to crude oil supply routes through the Strait of Hormuz, sending Brent crude prices back above the $100-per-barrel mark and pressuring currencies of oil-importing nations such as India.
The rupee had opened lower at 94.58 against the dollar earlier in the day compared with the previous close of 94.25.
Concerns Revive
The sharp rebound in oil prices has revived worries over India’s current account deficit and imported inflation, leading to renewed demand for the dollar. India imports a significant portion of its crude oil requirements, making the rupee highly sensitive to movements in global energy prices.
Rising crude prices after renewed U.S.-Iran hostilities reversed the rupee’s recent rally, although dollar sales by state-run banks reportedlytried to cushion sharper losses in the local currency.
Market participants also remained cautious ahead of key U.S. non-farm payroll data due later in the day, which could influence expectations around the Federal Reserve’s interest rate trajectory and drive further movement in the dollar index globally.
Dollar Firm
The dollar remained firm against major global currencies as investors moved toward safe-haven assets amid rising geopolitical uncertainty.
Volatility in the rupee is likely to remain elevated as traders continue tracking developments in the Middle East and fluctuations in crude oil prices. The rupee had earlier this week hit a record low of 95.43 against the dollar before recovering amid temporary optimism surrounding ceasefire talks.
The Reserve Bank of India is also expected to remain active in the currency market to curb excessive volatility, especially if geopolitical tensions continue to keep energy prices elevated.
Apart from oil prices, foreign fund flows, domestic equity market sentiment and U.S. economic data are expected to remain key drivers for the rupee in the near term.
Source:
- spot rates from https://www.moneycontrol.com/markets/currencies/
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