Indian rupee slides to 96.16 amid Middle East tensions

The Indian rupee fell sharply against the U.S. dollar on Tuesday, July 14, 2026, marking one of its steepest declines in recent weeks as escalating Middle East tensions and rising crude oil prices rattled financial markets. The currency opened 33 paise weaker at 95.95 and extended its losses in early trade, depreciating as much as 48 paise to touch 96.16.

The decline follows a sustained period of pressure, with the rupee having closed at a four-week low of 95.68 on Monday, July 13. Analysts attribute the weakness to a confluence of external factors, primarily renewed military strikes between the United States and Iran and reported attacks near the strategically vital Strait of Hormuz. These events have reignited fears of disruptions to global oil supplies, pushing Brent crude prices higher. As a major oil importer that relies on overseas purchases for nearly 85 percent of its needs, India's currency is highly sensitive to such price spikes, which increase the nation's import bill and boost demand for U.S. dollars.

Simultaneously, the U.S. dollar has strengthened on expectations that American interest rates will remain elevated for longer, following recent hawkish remarks from a...