Rupee Slides as Oil, Trade Tensions Weigh

The Indian rupee depreciated by 14 paise to close provisionally at 90.70 against the US dollar on Wednesday, February 11, 2026. The move reversed the previous session’s modest gains and came amid sustained dollar buying by importers and lingering geopolitical tensions, according to forex market participants.

At the interbank foreign exchange market, the rupee opened at 90.56 per dollar and traded in a narrow range, touching an intraday low of 90.75 and a high of 90.46. It finally settled at 90.70, compared with Tuesday’s close of 90.56, when it had ended 10 paise stronger after paring initial losses.

Traders said the currency is trading with a slight negative bias, pressured by risk aversion linked to geopolitical developments and by persistent dollar demand from companies covering import bills. These factors outweighed intraday support from foreign portfolio inflows and a softer US dollar.

Analysts pointed to elevated crude oil prices as a key driver of rupee weakness. Brent crude futures, the global benchmark, were up 1.44% at around $69.78 per barrel in Wednesday’s trade. Higher oil prices typically widen India’s import bill, increasing demand for dollars and weighing on the local currency.

Anuj Choudhary, research analyst at Mirae Asset ShareKhan, said the rupee declined on the back of dollar demand from importers, geopolitical tensions and a surge in crude oil prices. He noted that a weak US dollar and foreign inflows helped limit the downside for the rupee on the day.

Market sentiment was also influenced by emerging details of the recently announced India‑US trade deal. While the agreement was initially welcomed, traders said fresh concerns followed the release of a White House fact sheet outlining commitments by India to eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products.

The document specified tariff changes on items such as dried distillers’ grains, red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, among other products. It also stated that India has committed to purchase over $500 billion of US energy, information and communication technology, agricultural, coal and other products, raising questions in markets about the future trade balance and sectoral impacts.

Despite local headwinds, global currency conditions offered some relief. The dollar index, which measures the greenback against a basket of six major currencies, was down 0.26% at 96.54 on Wednesday. The weakness followed disappointing US macroeconomic releases.

According to Choudhary, the US dollar weakened after lower‑than‑expected ADP non‑farm employment figures and retail sales data. These indicators have tempered expectations for US growth momentum, contributing to a softer dollar tone and helping to cushion emerging market currencies including the rupee.

Domestic equities showed a mixed close alongside currency market moves. The Sensex slipped 40.28 points to end at 84,233.64, while the Nifty 50 index edged up 18.70 points to finish at 25,953.85. Market participants described overall investor sentiment as cautious.

Foreign portfolio investors remained net buyers in the previous session. Exchange data showed that foreign institutional investors purchased Indian equities worth ₹69.45 crore on Tuesday, February 10. Traders said such inflows may lend support to the rupee at lower levels even as external risks and commodity prices continue to be monitored.