The rupee depreciated by 34 paise to close at 96.59 (provisional) against the U.S. dollar on Wednesday (July 22, 2026), weighed down by surging crude oil prices and heightened geopolitical uncertainty.

Forex traders said risk aversion in global markets and a negative trend in domestic equities further dented investor sentiments.

At the interbank foreign exchange, the rupee opened at 96.36 against the U.S. dollar and traded in the range of 96.25 to 96.57 during the day. The domestic unit finally settled at 96.59 (provisional), lower by 34 paise from its previous close.

On Tuesday (July 21, 2026), the rupee had settled higher by 11 paise at 96.25 against the American currency.

“Following a brief rally on Tuesday, the Indian rupee faces downward pressure amid surging crude oil prices and heightened geopolitical uncertainty,” said Dilip Parmar, Senior Research Analyst, HDFC Securities.

According to Mr. Parmar, renewed concerns over U.S. tariff rhetoric have further dampened sentiment. Spot USD-INR remains on a bullish track, with near-term support pegged at 96.10 and a retest of the record high around 97 on the horizon, he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.07% at 101.10.

Brent crude, the global oil benchmark, was trading 4.30% higher at $94.92 per barrel in futures trade.

Forex traders said crude oil prices remain elevated amid concerns over the security of oil shipments through the Red Sea and Strait of Hormuz.

“Crude oil prices rose as the U.S. struck Iran and Iran struck U.S. facilities in Kuwait, Bahrain and Jordan. Houthis have also threatened to target vessels carrying oil from Saudi Arabia in the Bab el-Mandeb,” said Anuj Choudhary, Research Analyst, Mirae Asset Share Khan.

“A sharp surge in crude oil prices too weighed on the rupee. However, diplomatic talks between the two nations may prevent a sharp fall in the rupee. Any intervention by the RBI may also support the rupee at lower levels,” Mr. Choudhary said, adding that the USD-INR spot price is expected to trade in a range of 96.25 to 96.85.

On the domestic equity market front, Sensex tanked 715.06 points to settle at 76,755.05, while the Nifty declined 191.45 points to 23,996.25.

Foreign Institutional Investors turned net buyers, purchasing equities worth ₹1,650.16 crore on Tuesday (July 21, 2026), according to exchange data.

The rupee depreciated 48 paise to 96.16 against the U.S. dollar in early trade on Tuesday (July 14, 2026), as heightened geopolitical uncertainty put pressure on most Asian currencies, including the rupee.

Forex traders said the rupee came under pressure due to a combination of factors—crude oil prices climbed on renewed geopolitical tensions, while demand for the U.S. dollar increased as investors moved toward safe-haven assets.

At the interbank foreign exchange market, the rupee opened at 95.95, then lost ground and touched 96.16, registering a fall of 48 paise from its previous close.

On Monday (July 13, 2026), the rupee depreciated 30 paise to close at 95.68 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.17, down 0.06%.

Brent crude, the global oil benchmark, was trading higher by 2.02% at $84.98 per barrel in futures trade amid concerns over disruptions to supplies through the Strait of Hormuz.

“India being a major oil importer, higher crude prices remain negative for the rupee”, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Mr. Bhansali further said higher oil import costs have raised concerns about India’s currency account and trade balance, weighing further on the currency.

On the domestic equity market front, the BSE Sensex declined 0.42% to 77,294.12 while the Nifty was down 0.64% at 24,144.60.

Foreign Institutional Investors on Monday (July 13, 2026), offloaded equities worth ₹3,062.27 crore in the domestic equity market, according to exchange data.

The rupee fell 4 paise to 95.52 against the U.S. dollar in early trade on Thursday (July 9, 2026), weighed down by surging crude oil prices after fresh tensions in West Asia rattled sentiments worldwide, raising fears of uncertainties over global trade.

According to analysts, oil prices soared to their highest point in weeks after President Donald Trump announced an end to the ceasefire with Iran in response to Iranian attacks on commercial ships in the Strait of Hormuz and on American military sites in other Gulf nations.

However, positive sentiment in domestic equity markets supported the Indian currency, they said.

At the interbank foreign exchange market, the rupee opened at 95.52 and remained weaker against the U.S. dollar, down 4 paise from its previous close.

On Wednesday (July 8, 2026) , the rupee plunged 52 paise to settle at 95.48 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.98, down 0.09%.

Brent crude, the global oil benchmark, was trading higher by 1% at $78.80 per barrel in futures trade.

Analysts attributed the sharp rise in crude prices to the fresh escalation in West Asia tension, which is likely to block the Strait of Hormuz and restrict the movement of oil tankers.

The domestic equity market saw some recovery, with Sensex rising 454.78 points, or 0.59%, to 76,958.38, and Nifty climbing 151.10 points, or 0.63%, to 24,033.15. Both indices crashed over 2% in the previous session.

Foreign institutional investors purchased equities worth ₹1,962.80 crore on a net basis on Wednesday (July 8, 2026) according to exchange data.

The rupee tanked 59 paise to settle at 95.55 (provisional) against the US dollar on Wednesday (July 8, 2026), as the U.S. launched fresh strikes on Iran after Tehran struck three ships in the Strait of Hormuz, pushing up crude oil prices and strengthening the dollar.

The U.S. military attacked Iran early on Wednesday (July 8, 2026), after it said Tehran struck three ships in the Strait of Hormuz, part of an American effort that also revoked the Islamic Republic’s ability to openly sell crude oil in the world market. Iran retaliated with strikes targeting Bahrain and Kuwait.

Following the strikes, global crude oil prices rose exponentially. Brent crude, the global oil benchmark, was trading higher by 6.16% at $78.73 per barrel in futures trade.

Weak domestic equity markets further weighed on the local unit, according to forex traders.

At the interbank foreign exchange market, the rupee opened at 95.15 against the U.S. dollar and traded in the range of 94.98-95.61 during the day. It eventually settled at 95.55 (provisional), down 59 paise from its previous close.

On Tuesday (July 7, 2026), the rupee appreciated 47 paise to close at 94.96 against the U.S. dollar.

“The rupee opened weaker against the dollar and continued to remain volatile intra-day, the dollar was bought on dips as the equity markets were down and dollar index was up. Overall, today’s rupee weakness was externally driven, mainly by higher crude oil prices, stronger U.S. dollar, and geopolitical uncertainty,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

The rupee is expected to remain in the range of 95.25 to 96.00 on Thursday (July 9, 2026), he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.13, up 0.11%.

On the domestic equity market front, Sensex crashed 1,677.12 points, or 2.15%, to 76,503.60, while Nifty plummeted 516.65 points, or 2.12%, to 23,882.05.

Foreign institutional investors purchased equities worth ₹393.19 crore on a net basis on Tuesday (July 7, 2026), according to exchange data.

The rupee fell 17 paise to 95.43 against U.S. dollar in early trade on Tuesday (May 26, 2026), as month-end dollar demand and elevated crude oil prices weighed on investor sentiments.

Forex traders said the broader pressure on the rupee is likely to continue as long as geopolitical tensions remain elevated. Moreover, Reserve Bank of India (RBI) measures and liquidity support may help provide temporary relief and contain volatility in the near term, they said.

Why is the Indian Rupee falling?

At the interbank foreign exchange market, the rupee opened at 95.43 against the U.S. dollar, down 17 paise from its previous close.

On Monday (May 25, 2026), the rupee gained 34 paise to close at 95.26 against the U.S. dollar with the RBI selling dollars and keeping the rupee well bid at all upper levels.

Meanwhile, Brent oil prices rose after they touched $93 per barrel with reports of fresh attacks against Iran offsetting hopes of a deal to reopen Strait of Hormuz.

U.S. President Donald Trump on Monday (May 25, 2026) said negotiations with Iran to end the war were progressing “nicely”, but officials pointed out that a final decision may take some time due to the complex communication networks Tehran deploys to consult with its supreme leader.

“With RBI on the prowl the speculative pressure against the rupee has come down significantly and a better risk appetite in equities has kept rupee firmer against the dollar,” said Anil Kumar Bhansali head of treasury and executive director, Finrex Treasury Advisors Limited Liability Partnership (LLP).

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.04, down 0.19%.

Brent crude, the global oil benchmark, was trading up 1.84% $97.91 per barrel in futures trade.

Brent oil moved up after a fall on Monday (May 25, 2026) after reports that U.S. had carried fresh attacks against Iran offsetting hopes of a deal to reopen the Strait of Hormuz.

“Reports on Monday [May 25, 2026] evening indicated that U.S. had launched fresh strikes against missile launch sites and mine laying boats taking oil a bit higher despite talks being held with Iranian authorities. This could complicate the ongoing peace negotiations,” Mr. Bhansali said.

On the domestic equity market front, Sensex declined 264.82 points to 76,224.14 in opening trade, while the Nifty dipped 27.6 points to 24,004.10.

Foreign institutional investors turned net buyers and purchased equities worth ₹821.75 crore on Monday (May 25, 2026), according to exchange data.

The gap between rich and poor nations is growing even wider as actions agreed to by many countries last year, including overhauling the major global financial institutions, remain unfulfilled promises, a U.N. report concluded.

The report assessing the blueprint adopted in Seville, Spain, last June to narrow the gap and achieve U.N. development goals for 2030 was issued ahead of next week’s spring meetings in Washington of the International Monetary Fund (IMF) and the World Bank, the main global financial institutions promoting economic growth.

The rupee opened weak and declined 4 paise to 90.24 against the U.S. dollar in early trade on Monday (January 5, 2026), as geopolitical uncertainties triggered by the U.S. intervention in Venezuela fuelled the demand for the American currency.

According to forex traders, the rupee is expected to trade lower due to geopolitical development, even though a lower crude prices could provide some cushion.

At the interbank foreign exchange market, the rupee opened at 90.21 against the U.S. dollar and lost further to trade at 90.24 against the greenback in early deals.

On Friday (January 2, 2026), the rupee settled lower by 22 paise at 90.20 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.36% higher at 98.50.

The U.S. on Saturday (January 3, 2026) carried out a military operation in Venezuela an deposed President Nicolas Maduro. President Donald Trump said the US would “run” the South American country and tap its vast oil reserves to sell to other nations.

Brent crude, the global oil benchmark, was trading 0.07% lower at $60.70 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex declined 135.81 points to 85,626.20 in early trade, while the Nifty was down 25.75 points to 26,302.80.

Foreign institutional investors turned net buyers, picking up equities worth ₹289.80 crore on Friday (January 2, 2026), according to exchange data.

The latest RBI data released on Friday (January 2, 2026) 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.