The rupee on Thursday gained four paise to settle at 94.84 against the US dollar after touching a record intraday low of 95.34, tracking a correction in global crude prices which hit $122.11 per barrel amid volatility in West Asia that kept the currency under pressure.However, the local currency was negatively impacted by the uncertainty surrounding the US-Iran negotiations, which restricted gains.The rupee opened the day at 95.01 in comparison to the US dollar on the interbank foreign exchange market, but it lost further ground to hit an all-time intraday low of 95.34 before ending at 94.84, up four paise from the previous day. The local currency fell 20 paise against the US dollar on Wednesday, closing at its previous all-time low of 94.88.Meanwhile, the US Fed maintained interest rates despite significant inflation pressure driven by rising oil prices. Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said the main effect on the rupee was of the rising oil prices, which touched $122 per barrel and looked headed for further upside as the US continued with its blockade of Iranian ports, while Iran did not allow any ship/tanker to pass through the Strait of Hormuz.Meanwhile, the exchange data stated that foreign institutional investors sold stocks valued at about Rs 2,460 crore on Wednesday.About half of India’s natural gas demands and 88 per cent of its crude oil needs are fulfilled by imports, with the Strait of Hormuz being the main route. The rupee has dropped by almost 5 per cent so far in 2026, following a similar decline last year.