The Indian rupee depreciated 49 paise to 93.32 against the US dollar in early trade on Monday, weighed down by a rise in crude oil prices and a stronger American currency amid raging geopolitical tensions. 

According to forex traders, renewed uncertainty in West Asia, particularly concerns over the Strait of Hormuz following inconclusive Iran–US peace talks, pushed crude oil prices higher. The risk-off sentiment also triggered fund outflows from domestic equities, adding pressure on the local currency. 

At the interbank foreign exchange market, the rupee opened at 93.30 against the US dollar and weakened further to 93.32 in early deals, compared with its previous close of 92.83 on Friday, when it had settled 32 paise lower. 

The dollar index, which measures the greenback against a basket of six major currencies, rose 0.38 per cent to 98.81. 

Brent crude rose above $100 a barrel 

Brent crude, the global oil benchmark, surged 7.28% to $102.13 per barrel in futures trade after the U.S. announced a blockade of Iranian ports starting Monday. 

According to the US Central Command, the blockade will be enforced “impartially against vessels of all nations” entering or leaving Iranian ports and coastal areas, while allowing transit through the Strait of Hormuz for ships travelling between non-Iranian ports. 

The Asian Development Bank on Friday warned that a prolonged conflict in West Asia could weigh on India’s macroeconomic performance through multiple channels, including elevated energy prices, disruptions to trade flows, and softer remittance inflows. 

Stock market under heavy selling pressure 

Domestic equity markets also came under heavy selling pressure in early trade. The 30-share Sensex plunged 1,600.73 points, or 2.06%, to 75,949.52 while the Nifty declined 468.85 points, or 1.95%, to 23,581.75. 

Despite the broader volatility, Foreign Institutional Investors (FIIs) were net buyers on Friday, purchasing equities worth ₹672.09 crore, according to exchange data. 

Meanwhile, the Reserve Bank of India (RBI) reported that India’s foreign exchange reserves rose by $9.063 billion to $697.121 billion for the week ended April 3, 2026. In the previous week, reserves had declined by $10.288 billion to $688.058 billion.