Rupee slides to 94.88 as Brent jumps 4% after Trump rejects Iran response

Dateline: Mumbai | 11 May 2026 

The rupee opened 40 paise lower at 94.88 against the US dollar on 11 May, after Brent crude prices jumped nearly 4% overnight to $105 a barrel. The move followed US President Donald Trump’s rejection of Iran’s response to the American peace proposal, deepening concerns of a prolonged blockade of the Strait of Hormuz. 

The rupee had closed the previous session at 94.48. 

Why did the rupee weaken on 11 May? 

The rupee weakened on 11 May because Brent crude surged nearly 4% to $105 a barrel after the US rejected Iran’s peace deal response. Higher oil prices raise India’s import bill, since the country relies heavily on crude imports, putting pressure on the currency. 

Trump described Iran’s response to the American peace offer as “totally unacceptable”, dashing hopes of a quick end to the conflict. 

Iranian media reported that Tehran’s demands included: 

• An end to the war on all fronts 

• The lifting of sanctions 

• Reparations 

• Recognition of Iran’s control of the Strait of Hormuz 

The Strait of Hormuz is a vital energy route through which a large share of global crude shipments pass. 

 How did the rupee trade on 8 May? 

On 8 May, the rupee moved in a 40-paise range during the day. The Reserve Bank of India sold dollars in the session to prevent sharp depreciation. 

What did Prime Minister Modi say on fuel use? 

Over the weekend, Prime Minister Narendra Modi called for work-from-home, carpools and forgoing foreign travel for a year to curb fuel use amid rising energy prices. 

“The country must save foreign exchange by using less petrol and diesel, fertilizer and also cut back on gold purchases,” he said. 

Outlook 

Brent crude was trading at $105 a barrel at the time of the rupee’s opening on 11 May. The rupee’s near-term direction is tied to crude price movements, given India’s heavy reliance on oil imports. 

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