Rupee Today: Indian Currency Hits Two-Week High Against US Dollar As Crude Oil Falls Below $95 After US Midterm Elections

The Indian rupee strengthened against the US dollar on Thursday, November 5, touching a two-week high as a sharp fall in crude oil prices eased pressure on the domestic currency. The rupee opened at 94.35 per dollar, gaining 29 paise from Wednesday's close of 94.64, before giving up some of its early gains.

The domestic currency was trading around 94.52 per dollar later in the session as dollar buying by foreign lenders and state-run banks limited the recovery.

The gains came as Brent crude oil prices slipped below $95 a barrel after the US midterm election results. The Democratic Party's victory in both chambers of Congress raised hopes of diplomatic efforts to end the conflict with Iran, which has pushed oil prices higher in recent months.

The rupee also drew support from a weaker US dollar and gains in domestic equities, although demand for dollars from importers prevented a stronger rise.

Crude Oil Slides Nearly 9%, Dollar Weakens After US Midterm Election Results

Brent crude oil prices dropped nearly 9% in the previous session and were trading around $94 a barrel on Thursday, extending their fall from levels near $120 seen towards the end of October.

The decline followed the US midterm elections, where Democrats gained control of both chambers of Congress. Investors are assessing whether the outcome could increase pressure for diplomatic talks with Iran and reduce the risk of further military escalation in the Middle East.

For India, which imports nearly 90% of its crude oil requirements, lower oil prices reduce the demand for dollars from oil companies and can ease pressure on the rupee.

The US dollar also weakened against major currencies on Thursday, with the dollar index slipping to around 101.3 in early trade.

Indian equities rallied during the session as falling oil prices and improved global sentiment supported buying across sectors. Foreign institutional investors had purchased Indian shares worth ₹7,284 crore on Wednesday, according to provisional exchange data.

Rupee Gives Up Early Gains As Banks, Importers Buy Dollars

Despite opening at a two-week high, the rupee slipped from 94.35 to around 94.52 per dollar later in the session as banks and importers stepped up dollar purchases.

Demand for dollars from foreign lenders and state-run banks limited the currency's gains, even as crude oil prices and the dollar index remained lower. Importers typically buy dollars when the rupee strengthens to meet their foreign currency requirements, which can restrict further appreciation.

The rupee has remained under pressure through much of 2026 and is still down around 5% against the dollar so far this year, according to Reuters.

Market participants will now track crude oil prices, foreign investment flows and developments in the Middle East for further direction. A sustained decline in oil prices could ease India's import bill, although renewed dollar demand and geopolitical uncertainty may continue to limit gains in the domestic currency.

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