The Indian rupee slipped to 94.04 per US dollar on November 12, breaking its recent upward streak.
This dip came after a state-owned bank bought up dollars and crude oil prices rose, making things tougher for the rupee.
Earlier in the day, it even hit a low of 93.62 before bouncing back above 94.
US Federal Reserve hints boost dollar
A stronger US dollar played a big part, thanks to hints from the US Federal Reserve about possible rate hikes soon, which pushed the dollar index higher.
Dilip Parmar, senior research analyst at HDFC Securities, explained that bargain hunting for dollars and rising oil prices put extra pressure on the rupee, even though some foreign investment was coming in.
As a forex trader at a bank put it, steady demand for dollars kept the rupee from holding onto its gains below 94, while weak vibes in Indian stocks didn't help either.