INR to USD: Rupee falls 6 paise to 95.42 against U.S. dollar in early trade

The rupee fell 6 paise to 95.42 against the U.S. dollar in early trade on Wednesday (August 12, 2026), weighed down by the sharp rise in Brent crude toward $90/bbl, as hopes of a quick U.S.-Iran agreement and reopening of the Strait of Hormuz faded.

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Forex traders said the principal driver behind the rise in Brent crude prices is the uncertainty over the Strait of Hormuz.

Markets are increasingly sceptical about a quick U.S.-Iran agreement, while reports of attacks on shipping have renewed concerns about physical supply, they said.

At the interbank foreign exchange, the rupee opened at 95.40 before slipping further to 95.42, down 6 paise from its previous close.

On Tuesday (August 11, 2026), the rupee declined 6 paise to settle at 95.36 against the U.S. dollar. With Brent now near $90 per barrel, INR/USD at 95.50 becomes the immediate level to watch, followed by 95.80–96.00 if oil remains elevated, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

Brent crude, the global oil benchmark, was trading higher by 1% at $89.80 per barrel in futures trade.

“Rupee opened at 95.42 with oil prices slightly down at USD 89.36 per barrel while the dollar index was at 99.83 virtually unchanged. Oil companies continue to buy U.S. dollars for their daily requirements while RBI continues to support the rupee at various levels daily,” Mr. Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.87, up 0.05%.

“Markets are largely in wait-and-watch mode ahead of the U.S. inflation data, with the dollar receiving some support from elevated oil prices but limited by expectations that inflation may continue to moderate,” Bhansali said.

On the domestic equity market front, Sensex dipped 35.99 points to 78,097.31 in early trade, while the Nifty skid 31.15 points to 24,444.55.

Foreign institutional investors purchased equities worth ₹258.55 crore on a net basis on Tuesday (August 11, 2026), according to exchange data.