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Rupee falls 27 paise amid dollar strength and rising oilThe Indian rupee fell to 90.94 against the US dollar, breaching 91 in thin holiday trade outside Mumbai. Dollar demand, oil price rise, and US Iran tensions amplified the decline.By Anshul  February 20, 2026, 9:36:33 AM IST (Published)2 Min ReadThe Indian rupee opened 27 paise lower at 90.94 against the US dollar on Friday (February 20), extending losses from Wednesday’s (February 18's) close of 90.67.

The currency market was closed on Thursday (Febraury 19) for a public holiday.

Bankers noted that patchy holiday flows, combined with losses in the non-deliverable forward market, drove the rupee’s slide.

“The move is sizeable because it occurred in holiday-thinned trade, where large swings are usually uncommon,” said a senior banker.

Sustained dollar demand from a major public sector bank and persistent pressure in offshore forwards amplified the rupee’s decline. Limited liquidity, due to the Mumbai holiday, gave these flows an outsized impact on the currency.

Domestic equities fell on Thursday (Fenruary 19), while oil prices climbed and the US dollar extended its weekly rally, further weighing on the rupee. Analysts pointed out that the Reserve Bank of India (RBI) had previously intervened to keep the rupee near 90.70–90.80, raising questions about potential action this week.

“With a host of negatives, the odds are the move above 91 may stick,” a currency trader noted.

Global factors added to the pressure. The dollar strengthened on expectations of a hawkish Federal Reserve and geopolitical tensions between the US and Iran, while crude oil prices rose following heightened US warnings to Iran, increasing import costs for India.

-With agencies inputsContinue ReadingTagsDollarrupeerupee vs dollar