The rupee traded in a narrow range and appreciated 4 paise to 94.39 against the U.S. dollar in early trade on Monday (September 7, 2026) , as the support from strong FCNR-related dollar inflows was negated by elevated crude oil prices amid persistent global headwinds.

Forex traders said the rupee continues to draw strength from the robust liquidity wave, but renewed military strikes have driven Brent crude toward $97 per barrel, reigniting fears over West Asian energy supply disruptions.

At the interbank foreign exchange market, the rupee opened at 94.40 against the U.S. dollar, then touched 94.39, registering a gain of 4 paise from its previous close.

On Friday (September 4, 2026), the rupee settled higher by 8 paise at 94.43 against the U.S. dollar.

“The rupee entered the week on a stronger footing, supported by heavy FCNR-related dollar inflows. However, the global backdrop remains a challenge. 94.00–94.20 remains the key support zone. If global headwinds intensify, USDINR could move back towards 95.00, 95.50 and eventually 96.00,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.18, higher by 0.01% on safe-haven demand amid renewed U.S.-Iran tensions.

Brent crude, the global oil benchmark, was trading higher by 0.80% at $97.05 per barrel in futures trade, amid escalating US-Iran tensions and fears of disruption to oil flows through the Strait of Hormuz.

Fresh strikes between both sides have pushed Brent crude closer to $97 per barrel, reviving concerns over energy supplies from West Asia, Mr. Pabari said, adding that for India, higher oil prices rarely arrive alone. They usually bring along a larger import bill, stronger dollar demand and renewed pressure on the rupee.

On the domestic equities market front, Sensex dropped 172.77 points to 76,342.66 in early trade, while the Nifty declined 63.30 points to 23,832.60.

Foreign institutional investors (FIIs) offloaded equities worth Rs 3,111.94 crore on a net basis on Friday, according to exchange data.

India’s forex reserves jumped $11.475 billion to a new all-time high of $740.803 billion during the week ended August 28, the RBI said on Friday.

The rupee appreciated 14 paise to close at 95.21 (provisional) against the U.S. dollar on Friday (July 3, 2026) as the dollar index retreated from its recent 15-month high levels and mirrored positive domestic equities.

Forex traders said despite a weaker dollar index and lower crude oil prices, the rupee is facing pressure from robust dollar demand from importers and corporate hedgers.

At the interbank foreign exchange market, the rupee opened at 95.20 against the American currency and traded in a range of 95.16-95.35 during the session.

The rupee finally closed at 95.21 (provisional), registering a rise of 14 paise from its previous close.

On Thursday (July 2, 2026), the rupee pared initial gains and settled for the day on a negative note, lower by 19 paise at 95.35 against the U.S. dollar.

According to experts, the Reserve Bank of India (RBI) is actively purchasing dollars to rebuild its foreign exchange reserves, which have dropped to roughly $672.6 billion from a February peak of $728.49 billion.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.75, lower than its recent 15-month high of 101.6.

Meanwhile, Brent crude, the global oil benchmark, was trading higher by 0.22% at $71.96 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 261.79 points to settle at 77,763.91, while the Nifty was up 95.15 points to 24,270.85.

Foreign institutional investors sold equities worth ₹311.82 crore on a net basis on Thursday (June 2, 2026), according to exchange data.

Foreign investors extended their selling spree in June, withdrawing ₹49,340 crore ($5.16 billion) from Indian equities, triggered by a combination of early-month global risk aversion, a preference for developed markets, soaring U.S. bond yields, and stretched valuations in the domestic market.

According to data from the Central Depository Services (India) Ltd, the total withdrawals by Foreign Portfolio Investors (FPIs) from Indian equities have surged to ₹2.7 lakh crore so far in 2026, surpassing the ₹1.66 lakh crore pulled out during the entire calendar year 2025.