INR vs USD: Indian rupee falls to 93.28 against US dollar on April 7

Investing.com data showed that the Indian rupee depreciated during the trading session as of 11:30 am on April 7, trading around 0.26% higher at 93.289 against the US dollar, compared to the previous market close levels.

On Monday, the rupee dropped to a low of 93.20 against a stronger US greenback amid Trump’s threats of further missile strikes on Iran.

According to a PTI report, the rupee gained 28 paise to close at 92.90 against the greenback on Monday, April 6, after the Reserve Bank of India’s (RBI) measures to dampen volatility in the domestic notes. The Indian currency opened 17 paise lower at 93.05 against the US dollar on Tuesday, April 7.

What’s fuelling Indian rupee’s fall?

Despite the Reserve Bank of India’s (RBI) move to tighten its rules to control the speculative positions in the currency market by capping the open position of banks at $100 million, the rupee has been depreciating against the US dollar due to strong global demand for the greenback amid the US-Iran conflict.

The recent developments suggest that investors are buying more US dollars in the market as there seems to be an absence of any near term potential ceasefire deal between the two nations in conflict.

US President Donald Trump has given a Tuesday evening 8 pm (EDT) deadline to Iran to open the Strait of Hormuz for the global oil trade; otherwise, Western nations will target key energy resources like power plants.

Media reports suggest that Trump’s recent deadline on Iran comes amid potential ceasefire talks for a conflict which entered its sixth week since its beginning on February 28, 2026.

These developments are fuelling the demand for dollars in the global market. Bloomberg US dollar spot index showed that the greenback was trading 0.09% higher at 100.071 as of 2:15 am on Tuesday, April 7, compared to the previous currency market close at 99.981.

On the foreign investor outflow front, NSE data highlighted that the FIIs or FPIs have continued their selling trend, offloading ₹8,167.17 crore worth of capital market assets in a single day on Monday, April 6, 2026, across the exchanges in India, as the investors move out of emerging markets to safer assets.

“The recent actions by the Reserve Bank of India have clearly played a stabilising role. The central bank has managed to pull the rupee away from extreme weakness, anchoring it closer to its strength zone,” CR Forex Advisors MD Amit Pabari told PTI, adding that “underlying pressures continue to build beneath the surface.”

Crude oil prices were trading around $111 per barrel (bbl) level due to the uncertainty in the market for global oil trade.

“Crude oil prices have remained elevated above $100 per barrel, and that is where the pressure truly begins. For an oil-importing nation like India, higher crude directly translates into a widening Current Account Deficit (CAD). At the same time, foreign investors have pulled out nearly $16 billion from Indian markets this year, reflecting a broader risk-off sentiment,” said the expert.