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The rupee appreciated 20 paise to 94.25 against the U.S. dollar in early trade on Monday (June 29, 2026), supported by easing crude oil prices, even as a firm U.S. dollar and tepid investor risk appetite weighed on sentiments.
Forex traders said the rupee opened on a positive note with oil prices remaining supportive and foreign inflows improving. The overall bias remains positive for the rupee, they said, adding that the immediate hurdle remains the U.S. dollar, which continues to hold firm near a 13-month high.
At the interbank foreign exchange market, the rupee opened at 94.36, then gained momentum and touched 94.25, registering a gain of 20 paise from its previous low.
On Thursday (June 25, 2026), the rupee settled at 94.45 against the U.S. dollar.
Indian stock, currency, and commodities markets were shut on Friday (June 26, 2026) on account of Muharram.
“The rupee may remain under pressure amid a firm U.S. dollar and the risk of a rebound in crude oil prices, though bond inflows could offer some support. Technically, 93.50–94.10 is a strong support zone, while a breakout above 94.80 could open the way towards 95.30–95.50,” said CR Forex Advisors MD – Amit Pabari.
Meanwhile, India’s forex reserves increased by $963 million to $672.587 billion during the week ended June 19, the RBI said on Friday (June 26, 2026). In the previous reporting week, the overall reserves had dropped by $9.985 billion to $671.625 billion.
According to Mr. Pabari, a steady gain in India’s forex reserves shows the Reserve Bank is rebuilding its buffer after months of heavy dollar selling.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.37, up 0.02%.
Brent crude, the global oil benchmark, was trading higher by 0.72% at $72.51 per barrel in futures trade.
“Brent crude has slipped to around $72 per barrel, it’s lowest in four months, after falling more than 10% in just one week. Tankers are moving freely through the Strait of Hormuz again, and Gulf supply is returning to normal. For a country that imports most of its crude, this means a lighter import bill and softer dollar demand,” Mr. Pabari said.
On the domestic equity market front, Sensex declined 63.65 points to 77,047.63 in early trade, Nifty was marginally up by 16.55 points to 24,070.20.
Foreign institutional investors purchased equities worth ₹383.76 crore on a net basis on Thursday (June 25, 2026), according to exchange data.
Published – June 29, 2026 10:26 am IST
