The rupee logged its sharpest fall since ​late-July on Tuesday, pressured by a third straight day of ‌rising oil prices that pushed Brent to ​near $100 a barrel as the ongoing Iran ⁠war deepened worries over sustained energy supply disruptions.On the day, tensions rose following attacks by Yemen’s Iran-aligned Houthis on some energy ‌facilities in Saudi Arabia and as Tehran threatened the United States with “economic warfare”.Singed by the ‌pressure, the rupee declined to 94.8175 per dollar ‌by ⁠the end of the session, down 0.35% ⁠from its previous close.Traders said the dollar sales from state-run banks, most likely on behalf of the Reserve Bank of India, ​cushioned the currency’s fall but ‌did not appear intended to anchor it to a specific level.Persistent central bank interventions had helped drive the rupee higher to a more than two-month ‌peak last week. However, that rally has run ​into resistance on account of a renewed rise in oil prices and still-elevated hedging ⁠demand from local importers.Other emerging market currencies came under pressure on Tuesday as well, with both the Thai baht ‌and South African Rand slipping about 0.4%.Asian stocks fell, driving MSCI’s gauge of regional stocks down about 1%. Equities in Mumbai slipped 0.6%.Analysts expect oil prices to remain a key variable for FX markets in the near term alongside how expectations for ‌a U.S. rate hike evolve over the coming days. A ​key U.S. consumer inflation reading is due on Friday.“We continue to think the bullish case ⁠for the dollar will prove stronger in the near term, ⁠although Friday’s US CPI release remains a clear risk event,” ING said in a note.Markets ‌are currently pricing in a chance of about 60% for a rate hike by the Federal ​Reserve next week.Published on September 8, 2026