Representative image.
| Photo Credit: Reuters
The rupee depreciated 7 paise to close at 95.83 (provisional) against the U.S. dollar on Thursday (June 4, 2026), as heightened geopolitical tensions between the U.S. and Iran drove energy volatility and aggressive safe-haven buying.
Forex traders said the prolonged West Asia crisis poses a major risk for India, which relies heavily on energy imports.
Market participants are now turning their attention to the Reserve Bank of India’s MPC rate decision on Friday (June 5, 2025), as inflation, growth and the rupee are under focus. The six-member MPC, headed by RBI Governor Sanjay Malhotra, will announce its decision on Friday (June 5, 2025).
At the interbank foreign exchange market, the rupee opened at 95.70 against the U.S. dollar, then touched an intra-day low of 95.85 and a high of 95.59 before closing at 95.83 (provisional), down 7 paise from its previous close.
On Wednesday (June 3, 2025), the rupee depreciated 40 paise to close at 95.76 against the U.S. dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.31, down 0.21%.
Brent crude, the global oil benchmark, was trading lower by 2.04% at $95.81 per barrel in futures trade.
“We expect the rupee to trade with a negative bias on geopolitical tensions and firm U.S. treasury yields. Any bounce back in the U.S. dollar may also pressurise the rupee. Crude oil prices continue to remain elevated,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.
Mr. Choudhary added that any positive development from the U.S.-Iran peace talk front may prevent a sharp fall for the domestic unit.
“Traders may take cues from weekly unemployment claims data from the U.S. today (Thursday) and the non-farm payrolls report on Friday [June 5, 2026]. Investors may watch out for the RBI monetary policy decision,” Mr. Choudhary said, adding that “USDINR spot price is expected to trade in a range of 95.40 to 96.15”.
The high-powered Monetary Policy Committee, headed by RBI Governor Sanjay Malhotra, on Wednesday (June 3, 2025) started its three-day brainstorming amid expectations that the central bank may leave the key policy rate unchanged at 5.25% as the West Asia conflict poses challenges to inflation as well as economic growth.
After three days of deliberations, the six-member Monetary Policy Committee (MPC) will announce the decision on Friday (June 5, 2026).
On the domestic equity market front, Sensex advanced marginally by 13.84 points to settle at 74,360.01, while the Nifty was up 10.95 points to 23,416.55.
Foreign institutional investors offloaded equities worth ₹5,616.56 crore on a net basis on Wednesday (June 3, 2026), according to exchange data.
Published – June 04, 2026 04:38 pm IST
