The Indian rupee weakened modestly against the US dollar on October 28 as high crude-oil prices increased pressure on an economy that imports most of its petroleum requirements. Reuters reported the rupee around ₹95.19 per dollar compared with the previous close of ₹95.1150.
Brent crude was trading above $115 a barrel after an attack on a Saudi refinery renewed concerns about supply disruption. Oil matters directly to the rupee because India imports close to 90% of its crude requirement. Higher import costs increase demand for dollars from oil companies and can widen inflation and current-account pressures if elevated prices persist.
The rupee's fall was contained by modest foreign portfolio inflows and dollar sales by state-run banks that traders attributed to likely Reserve Bank of India intervention. The currency also performed better than several other Asian peers during the session.
Markets were simultaneously waiting for the US Federal Reserve's policy decision. Even when the Fed leaves rates unchanged, guidance on the future path of US interest rates can move Treasury yields and the dollar, affecting emerging-market currencies and capital flows.
The key question for India is duration rather than one trading session. A short oil spike can be absorbed through buffers and currency management, but sustained high prices can feed into fuel costs, inflation expectations, the trade balance and corporate margins. That makes oil and US monetary policy two external variables that can quickly change India's near-term macroeconomic conditions.