2 weeks ago
Rupee Falls 7 Paise to 95.40 Against US Dollar
The value of one country's money compared to another country's money is called the exchange rate.
The Indian rupee is the money used in India, and the US dollar is the money used in the United States.
On Thursday, the rupee became a little less valuable, falling by 7 paise to 95.40 rupees for one US dollar.
That means you would now need 95 rupees and 40 paise to buy one US dollar.
One reason is that oil, which countries need to buy, has become expensive.
Another reason is that the United States and Iran are having a serious disagreement.
Iran said it might close the Strait of Hormuz, a very important sea route for oil ships, until 2029.
The US President said the United States controls that waterway.
When people worry about things like this, they often buy US dollars, which makes other money like the rupee worth less.
India's central bank, the RBI, has been helping the rupee stay close to 95.41–95.45, and Indian stock markets were also trading lower.
The Indian rupee depreciated 7 paise to 95.40 against the US dollar in early trade on Thursday, after closing at 95.33 on Wednesday.
Elevated crude oil prices and lingering geopolitical risks, including the US–Iran standoff, pressured the currency.
Iran warned it may keep the Strait of Hormuz closed until 2029, while the US President said the Strait is in the US's command.
The dollar index traded at 100.01, while Brent crude fell 1.22% to $87.89 per barrel.
The RBI has been supporting the rupee at 95.41–95.45, amid ₹1,002.50 crore of net equity selling by foreign institutional investors on Wednesday.
- Who
- The Indian rupee, India's central bank (RBI), forex traders, and the US and Iran over the Strait of Hormuz standoff.
- What
- The rupee depreciated 7 paise to 95.40 against the US dollar in early trade.
- Where
- India's interbank foreign exchange market.
- When
- Thursday, August 13, 2026, in early trading.
- Why
- Elevated crude oil prices and lingering geopolitical risks from the US–Iran standoff over the Strait of Hormuz.
Iran's Position
US Position
Control of the Strait of Hormuz
Iran's Position
Iran warns it may keep the Strait of Hormuz closed until 2029, a threat that pressures global oil prices and currencies like the rupee.
US Position
The US President says the Strait of Hormuz is in the US's command, indicating that the US rejects Iran's ability to close the vital oil route.
Key facts
- Rupee open (Thursday)
- 95.40 per US dollar
- Previous close (Wednesday)
- 95.33 per US dollar
- Dollar index
- 100.01
- Brent crude price
- $87.89 per barrel (down 1.22%)
- RBI support level
- 95.41–95.45
- FII net selling (Wednesday)
- ₹1,002.50 crore
- Sensex / Nifty
- 77,813.38 (-152.97) / 24,351.15 (-84.80)
Quotes
Anil Kumar Bhansali
Head of Treasury and Executive Director, Finrex Treasury Advisors LLP
“RBI has been continuously backing the rupee at 95.41-95.45 despite oil demand taking it lower.”
thehindubusinessline.com





