The rupee gained 5 paise to 94.46 against the U.S. dollar in early trade on Friday (September 4, 2026), supported by optimism over rising foreign inflows and a rise in risk appetite.

Forex traders said the rupee is poised to gain strength, supported by strong underlying inflows and aggressive RBI intervention. However, higher crude oil prices and potential U.S.-Iran tensions could limit further gains.

At the interbank foreign exchange market, the rupee opened at 94.53 against the U.S. dollar, then gained ground to touch 94.46, registering a gain of 5 paise from its previous close.

On Thursday (September 3, 2026), the rupee extended its gaining momentum for the fifth straight session appreciating 22 paise to close at 94.51 against the U.S. dollar.

India mobilised a record $127.23 billion through foreign-currency deposits under a special central-bank programme aimed at bolstering the country’s foreign-exchange liquidity.

Including overseas foreign-currency borrowings (OFCB) and external commercial borrowings (ECB), total inflows under the measures reached $136.377 billion, according to RBI data.

“Overall, the FCNR story has given the rupee a strong shot in the arm, but the underlying fundamentals still carry their share of risk. 94.00–94.20 remains a strong support zone. Any negative surprise, especially from the oil front, could pull USDINR back up towards 95.00, 95.50 and eventually 96.00,” C.R. 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 99.05, higher by 0.15 per cent on safe-haven demand amid renewed U.S.-Iran tensions.

Brent crude, the global oil benchmark, was trading higher by 0.40% at $95.90 per barrel in futures trade, on escalating U.S.-Iran tensions and fears of disruption to oil flows through the Strait of Hormuz.

On the domestic equities market front, Sensex jumped 468.64 points to 76,621.50 in early trade, while the Nifty was trading up 42.10 points at 23,915.55.

Foreign institutional investors offloaded equities worth ₹2,345.87 crore on a net basis on Thursday (September 3, 2026), according to exchange data.

The Rupee fell 10 paise to 95.28 against the U.S. dollar in early trade on Monday (June 29,2026) weighed down by the broad strength of the American currency in the overseas market.

Forex traders said whenever fresh foreign inflows enter the country, the Central bank is likely to use the opportunity to rebuild its reserve position rather than allowing the Rupee to strengthen too much.

Moreover, uncertainty prevailed over the progress of U.S.-Iran peace talks keeping a geopolitical risk premium in the market.

At the interbank foreign exchange market, the Rupee opened at 95.25, then touched 95.28 against the U.S. dollar, registering a loss of 10 paise from its previous close. On Friday (July 3, 2026) the Rupee appreciated 17 paise to close at 95.18 against the U.S. dollar.

“The message from last week is simple. When the Rupee cannot rally on good news like falling oil and a softer dollar, it tells you the underlying mood is fragile. Any fresh negative trigger could push USD-INR towards the 95.80 to 96.00 zone, while support holds near 94.80 to 95.00,” 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 100.95, up 0.10%.

“The dollar index eased to around 100.90 as weak U.S. jobs data continued to weigh on it. Normally, a softer dollar is exactly what the Rupee needs to catch a breath. This time, it simply did not happen, and that is the part worth watching closely this week,” Mr. Pabari added.

Brent crude, the global oil benchmark, was trading lower by 0.58% at $71.70 per barrel in futures trade. On the domestic equity market front, Sensex climbed 281.40 points to 78,051.03 in early trade, while the Nifty rallied 74.60 points to 24,347.05.

Foreign institutional investors turned net buyers, purchasing equities worth ₹1,355.33 crore on a net basis on Friday (July 3,2026), according to exchange data.

India’s forex reserves dropped $5.654 billion to $666.933 billion during the week ended June 26, the RBI said on Friday (July 3,2026). In the previous reporting week, the kitty jumped $963 million to $672.587 billion.

The kitty had expanded to an all-time high of $728.494 billion during the week ended February 27 this year before the onset of the West Asia conflict, which led to several weeks of a drop as the rupee came under pressure and the RBI had to intervene in the forex market through dollar sales.

The Rupee appreciated 19 paise to 95.16 against U.S. Sollar in early trade on Friday (July 3, 2026), as the Dollar index retreated from its recent 15-month high levels.

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

At the interbank foreign exchange market, the Rupee opened at 95.20, then touched 95.16 against the U.S. Dollar, registering a gain of 19 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.

Despite a weaker dollar index and lower crude oil prices, the rupee still weakened on Thursday (July 2, 2026). “If the rupee cannot strengthen on positive global cues, any negative development could easily push USD-INR towards the 95.80 to 96.00 zone,” CR Forex Advisors MD Amit Pabari said.

Mr. Pabari further added that the Reserve Bank of India is focused on restoring its forex reserves which have declined from a February peak of $728.49 billion to around $672.6 billion. Hence, the central bank has less room to allow the rupee to appreciate freely, “even when global conditions are supportive,”.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.81, lower from its recent 15-month high of 101.6.

Meanwhile, Brent crude, the global oil benchmark, was trading lower by 0.63 % at $72.25 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 545.89 points to 78,048.01 in early trade, while the Nifty surged 173.85 points to 24,346.90.

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

Foreign investors extended their selling spree in June, withdrawing Rs 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 US 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 Rs 2.7 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore pulled out during the entire calendar year 2025.

The Rupee surged 65 paise to 95.20 against the U.S. dollar in early trade on Friday (June 12, 2026) as global crude oil prices retreated after U.S. President Donald Trump indicated an imminent deal with Iran.

A weaker greenback and positive sentiment at the domestic equity markets provided further boost to the local unit, according to forex traders. At the interbank foreign exchange, the Rupee opened at 95.40 before rising further to 95.20 against the greenback.

The Rupee had plunged 60 paise to settle at 95.85 against the U.S. dollar on Thursday (June 11, 2026).

“The Rupee opened stronger on Friday (June 12, 2026), fuelled by a sharp retreat in global crude oil prices. This relief comes in the wake of statements from U.S. President Donald Trump indicating an imminent deal with Iran and the cancellation of planned military strikes,” Aamir Makda, Commodity & Currency Analyst, Commodity Technical Research, Choice Broking, said.

“We expect the Rupee… to maintain a positive bias between 95 and 95.30 throughout the day. While the Reserve Bank of India (RBI) has recently rolled out a series of aggressive measures to stimulate dollar inflows and defend the local currency, Thursday’s (June 11, 2026) slide below pre-intervention levels underscores the relentless pressure on the Rupee,” Mr. Makda said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.75, down 0.11%. Brent crude, the global oil benchmark, was trading lower by 1.07% at $89.41 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 921.30 points to 74,753.85, while Nifty surged 254.20 points to 23,417.25. Foreign institutional investors offloaded equities worth ₹1,987.09 crore on a net basis on Thursday (June 11, 2026), according to exchange data.