India's rupee dropped 45 paise to 94.67 against the US dollar in early trade on Friday, reversing gains from the previous session. The decline was driven by a spike in Brent crude oil prices back above $101 per barrel after US and Iranian forces exchanged fire near the Strait of Hormuz (a critical Persian Gulf chokepoint through which a significant share of the world's oil supply passes), undermining a month-old ceasefire. The rupee's slide reflects broader investor unease over West Asia instability, with a stronger dollar index and foreign institutional selling of Indian equities adding further pressure on the currency.