Oil prices and how much money is flowing into or out of India also have an impact. This article was originally written in December 2024 and updated on August 10, 2026, to reflect recent developments, including US-Israel/Iran war and ensuing Strait of Hormuz blockade, USD/INR price movements, and the impact of oil price spike. We might even see it test the lower end of that range if oil prices drop more and capital flows pick up. A sustained decrease in crude oil prices, de-escalation of tensions in the Middle East, or a weaker US dollar could benefit the Indian rupee. Rising oil prices and uncertainty in US-India trade relations have added fuel to the pair, pushing it to all-time highs of 96.97 seen in May 2026.