The rupee appreciated by 23 paise to 94.95 against the U.S. dollar in early trade on Wednesday (May 6, 2026) as Brent crude prices retreated from their elevated level after U.S. President Donald Trump hinted at a possible deal with Iran.

Forex traders said oil prices fell to $108 per barrel, as signs of easing geopolitical tensions in West Asia offset the lingering supply concerns.

The rupee rebounded from low levels and gained 11 paise to trade at 90.12 against the U.S. dollar in early deals on Wednesday (January 14, 2026), tracking lower crude oil prices and retreating American currency overseas.

Domestic equity markets also showed resilience even as traders stayed cautious, watching geopolitical developments and awaiting U.S. inflation numbers that are expected to provide cues for the Federal Reserve’s policy move, forex analysts said.

At the interbank foreign exchange, the rupee opened at 90.26 and strengthened up to 89.94 level before trading at 90.12 against the greenback, 11 paise higher from the closing level of the previous session.

On Tuesday (January 13), the rupee declined 6 paise to close at 90.23 against the U.S. dollar.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 98.90.

Brent crude, the global oil benchmark, was trading 0.47% lower at $65.17 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex rose 34.81 points to 83,662.50, while the Nifty gained 14.15 points to 25,746.90.

Foreign institutional investors offloaded equities worth ₹1,499.81 crore on Tuesday (January 13), according to exchange data.

The rupee snapped the four-day losing streak and appreciated 12 paise to settle at 90.18 (provisional) against the American currency on Tuesday (January 6, 2026), tracking a decline in the U.S. dollar index.

Forex traders said weak domestic equity markets and geopolitical tensions between the U.S. and Venezuela capped sharp gains for the domestic unit.

At the interbank foreign exchange, the rupee opened at 90.22 against the U.S. dollar and traded in the range of 90.08-90.25 before settling at 90.18 (provisional), up 12 paise from its previous close.

On Monday (January 5), the rupee closed 10 paise lower at 90.30 against the U.S. dollar.

“We expect the Rupee to trade with a negative bias on risk aversion in global markets emanating out of geopolitical tensions between the U.S. and Venezuela. Surge in crude oil prices and FII outflows may further pressurise the Rupee,” said Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan.

However, a weak Dollar amid disappointing U.S. economic data and any intervention by the RBI may support the rupee at lower levels, Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% lower at 98.21 after the U.S. ISM Manufacturing PMI came in below expectations.

Brent crude, the global oil benchmark, was trading 0.47% higher at $62.05 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex declined 376.28 points to settle at 85,063.34, while the Nifty was down 71.60 points to 26,178.70.

Foreign institutional investors offloaded equities worth ₹36.25 crore on Monday (January 5), according to exchange data.

On the domestic macroeconomic front, India’s services sector growth moderated in December, as the rates of expansion in incoming new work and output eased to the slowest in 11 months, and companies refrained from recruiting additional staff, a monthly survey said on Tuesday (January 6).

The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 59.8 in November to 58.0 in December, indicating the slowest rate of expansion since January 2025.

The Indian stayed weak for the fourth straight session and closed 8 paise lower at 90.28 (provisional) against the U.S. dollar on Monday (January 5, 2026), weighed down by a firm American currency and subdued equity market sentiment.

Forex traders said that the renewed geopolitical uncertainties after the U.S. military intervention in Venezuela fuelled dollar demand worldwide even though the falling crude oil prices supported the Indian currency at lower level.

At the interbank foreign exchange market, the rupee opened at 90.21 and touched the intra-day low of 90.50 during the session before ending at 90.28 (provisional) against the greenback, 8 paise weaker compared to the previous closing level.

This was the fourth consecutive day of fall for the Indian currency, which has lost 53 paise since December 30, 2025, when it closed at 89.75 a dollar.

The rupee settled lower by 22 paise at 90.20 against the U.S. dollar on Friday (January 2), a day after losing 10 paise on Thursday (January 1). It had lost 13 paise on the last day of the previous calendar year.

Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, said the rupee fell on Monday (January 5) amid geopolitical tensions between the U.S. and Venezuela.

The U.S. dollar index strengthened amid safe-haven demand, however, weakness in crude oil prices and FII inflows on Friday (January 2) provided a cushion to the rupee.

Mr. Choudhary said that the declining crude oil prices may support the rupee at lower levels. “Any intervention by the RBI may also support the rupee. Traders may take cues from ISM manufacturing PMI data from the U.S. USD-INR spot price is expected to trade in a range of 90 to 90.60,” he said.

The U.S. has carried out a military operation in Venezuela and deposed President Nicolas Maduro. President Donald Trump said the U.S. would “run” the South American country and tap its vast oil reserves to sell to other nations.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.24% higher at 98.39.

Brent crude, the global oil benchmark, was trading 0.36% lower at $60.53 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex declined 322.39 points or 0.38% to close at 85,439.62, while the Nifty fell 78.25 points or 0.30% to 26,250.30.

Foreign institutional investors turned net buyers, picking up equities worth ₹289.80 crore on Friday (January 2), according to exchange data.

The latest RBI data released on Friday (January 2) showed India’s forex reserves jumped by $3.293 billion to $696.61 billion in the week to December 26.

The overall kitty had increased by $4.368 billion to $693.318 billion in the previous reporting week.

The rupee hit a record low on Friday (December 12, 2025), as sentiment remained bogged down by the absence of a trade deal with the U.S. and portfolio outflows, drawing likely intervention by the Reserve Bank of India (RBI) to curb the fall.

The rupee weakened to ₹90.55 against the U.S. dollar, slipping past its previous all-time low of ₹90.4675 hit on December 11. The currency was last at ₹90.3475 as of 10:00 a.m., little changed on the day.

The rupee is Asia’s worst performer this year. It has fallen nearly 6% against the dollar year-to-date, as steep U.S. tariffs of up to 50% on Indian goods hurt exports to its biggest market, while also diminishing the appeal of local equities for foreign investors.

With negotiations ongoing, Prime Minister Narendra Modi said he spoke with U.S. President Donald Trump by phone on Thursday (December 11), as New Delhi seeks relief from 50% U.S. tariffs.

“The rupee weakness has further to go if tariffs are here to stay. The expectations are currently one-sided explaining importer demand while exporters remain missing, plus the pressure from portfolio outflows,” said Dhiraj Nim, an economist and FX strategist at ANZ.

“The RBI will be open to weakness but in a calibrated manner,” he said.

Foreign investors have net sold $18 billion of Indian shares in 2025 so far, making it one of the hardest-hit markets in terms of portfolio outflows.

Traders pointed to firm dollar bids in the non-deliverable forwards market alongside hedging demand from importers as factors behind the rupee’s decline on Friday (December 12).

The Central Bank, meanwhile, likely stepped in via dollar sales through state-run banks to curb the rupee’s fall, four traders told Reuters.

“As the rupee touches an all-time low and remains near it, we continue with our process of asking exporters to continue selling (dollars) in cash and importers to keep buying the dollars on the dip (in USD/INR),” said Anil Bhansali, head of treasury at Finrex Treasury Advisors.

Asian currencies were trading mixed while the dollar index wallowed near a two-month low.

According to analysts and bankers, U.S. trade negotiations remain the focal point for the rupee, and a breakthrough could help the currency snap from its recent falling streak.

The rupee’s rough patch has also pushed into undervaluation territory.

The currency’s trade-weighted real effective exchange rate, which accounts for the variation in inflation with trading partners, declined to 97.47 as of October, RBI data showed. A reading below 100 signals undervaluation.

The rupee depreciated 14 paise to close at 90.09 (provisional) against the U.S. dollar on Monday (December 8, 2025), as elevated crude oil prices and persistent foreign fund outflows dented investor sentiments.

Forex traders said multiple pressures, such as sustained importer demand for the American currency, foreign fund outflows from equities, and lingering uncertainty over the India-U.S. trade deal, are keeping investor sentiment fragile.

At the interbank foreign exchange market, the rupee opened at 90.07, then gave up ground and fell to an intra-day low of 90.26 against the U.S. dollar, down 31 paise from its previous close.

At the end of the trade on Monday (December 8), the rupee settled at 90.09 (provisional) against the greenback, down 14 paise over its previous close.

On Friday (December 5), the rupee settled at 89.95 against the U.S. dollar, after the Reserve Bank of India cut the key policy interest rate for the first time in six months.

On Friday (December 5), Reserve Bank Governor Sanjay Malhotra said the central bank does not target any band for the rupee in the forex market and allows the domestic currency to find its own correct level.

“We don’t target any price levels or any bands. We allow the markets to determine the prices. We believe that markets, especially in the long run, are very efficient. It’s a very deep market,” he said, while replying to a question on rupee depreciation at a post-monetary policy press meet on Friday (December 5).

Forex traders said investors’ focus has now shifted to the Fed’s policy outcome on December 9-10. Markets are placing nearly a 90% probability on a rate cut next week.

Meanwhile, India and the United States will commence three-day talks on the first phase of their proposed bilateral trade agreement here from December 10.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 98.98.

Brent crude, the global oil benchmark, was trading lower by 0.71% at $63.28 per barrel in futures trade.

On the domestic equity market front, Sensex tanked 609.68 points to settle at 85,102.69, while the Nifty dropped 225.90 points to 25,960.55.

Foreign institutional investors sold equities worth Rs 438.90 crore on Friday (December 5), according to exchange data.

Meanwhile, India’s forex reserves dropped $1.877 billion to $686.227 billion during the week ended November 28, the RBI said on Friday (December 5).

In the previous reporting week, the overall reserves had declined by $4.472 billion to $688.104 billion.

The rupee traded in a narrow range against the U.S. dollar in early trade on Monday (December 1, 2025), as the support from positive domestic equities was negated by elevated crude oil prices and foreign fund outflows.

Forex traders said significant dollar demand by importers has exerted persistent downward pressure on the local currency.

Moreover, investors are adopting a cautious stance amid ongoing trade tensions with the U.S., with expectations of a settlement towards the end of the year.

At the interbank foreign exchange market, the rupee opened at 89.45. It slipped further to trade at 89.46 against the greenback in initial deals, registering a loss of 1 paisa from its previous closing level.

On Friday (November 28), the rupee dropped nine paise to settle at 89.45 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.02% lower at 99.44.

Brent crude, the global oil benchmark, rose 1.57% to $63.35 per barrel in futures trade.

“In the near term, USD/INR will likely move within the 88.90–89.80 range, with 88.80–89.00 acting as a strong support area,” CR Forex Advisors MD Amit Pabari said.

If India–U.S. trade ties improve even slightly, the rupee could move toward the stronger side of this band. A clear break below 88.80 would be the first sign that the rupee may start strengthening more steadily, Mr. Pabari added.

On the domestic equity market front, Sensex and Nifty hit fresh lifetime highs in early trade. The Sensex was trading 315.87 points or 0.37% higher at 86,022.54, while Nifty went up 82.55 points or 0.32% to 26,287.20.

Foreign institutional investors sold equities worth ₹3,795.72 crore on a net basis on Friday (November 28), according to exchange data.