The rupee appreciated 17 paise to 95.56 against the American currency in early trade on Thursday (August 20, 2026) tracking a weak U.S. dollar, after the U.S. Treasury announced that it would double its buyback operations for longer-dated Treasury bonds.

Forex traders said the dollar index fell to its lowest level since late May after the U.S. Treasury announced that it would double its buyback operations for longer-dated Treasury bonds, pushing U.S. long-term yields lower and reducing the dollar’s yield advantage.

Moreover, the dollar is also being weighed down by reduced expectations of further Federal Reserve tightening though the FED policymakers’ inflation concerns increased at the July meeting, according to the FED minutes.

At the interbank foreign exchange, the rupee opened at 95.57, then rose to 95.56, higher by 17 paise from its previous close.

On Wednesday (August 19, 2026), the rupee stayed almost flat, ending just 1 paisa higher at 95.73 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.82, lower 0.01%.

The U.S. Treasury has said that it will at least double how much it buys back in longer-term government bonds, from $2 billion to $4 billion per operation, starting September 9.

“Lower long-term yields and concerns around fiscal support can reduce the appeal of dollar assets,” CR Forex Advisors MD, Amit Pabari said.

Brent crude, the global oil benchmark, was trading higher by 0.32% at $91.91 per barrel in futures trade.

“Oil continues to trade above $90 with a nervous edge, keeping pressure on India’s import bill. So while a weaker dollar offers some relief to the rupee, elevated oil prices remain a major counterweight,” Mr. Pabari said.

According to Mr. Pabari, the immediate support for the rupee is near 95.30–95.50. As long as this holds, USD/INR is expected to gradually move towards 96.20–96.50, he said.

“The weaker dollar may create short-term pauses, but oil and sentiment remain fragile. Dips are therefore likely to be shallow and short-lived rather than a genuine trend reversal,” he said.

On the domestic market front, Sensex jumped 504.32 points to 77,416.16, while the Nifty was trading up 118.85 points to 24,198.55 in early trade.

Foreign institutional investors purchased equities worth ₹407.99 crore on a net basis on Wednesday (August 19, 2026), according to exchange data.

The rupee fell 6 paise to 95.42 against the U.S. dollar in early trade on Wednesday (August 12, 2026), weighed down by the sharp rise in Brent crude toward $90/bbl, as hopes of a quick U.S.-Iran agreement and reopening of the Strait of Hormuz faded.

Also Read: The solution to the falling rupee lies in diplomacy

Forex traders said the principal driver behind the rise in Brent crude prices is the uncertainty over the Strait of Hormuz.

Markets are increasingly sceptical about a quick U.S.-Iran agreement, while reports of attacks on shipping have renewed concerns about physical supply, they said.

At the interbank foreign exchange, the rupee opened at 95.40 before slipping further to 95.42, down 6 paise from its previous close.

On Tuesday (August 11, 2026), the rupee declined 6 paise to settle at 95.36 against the U.S. dollar. With Brent now near $90 per barrel, INR/USD at 95.50 becomes the immediate level to watch, followed by 95.80–96.00 if oil remains elevated, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

Brent crude, the global oil benchmark, was trading higher by 1% at $89.80 per barrel in futures trade.

“Rupee opened at 95.42 with oil prices slightly down at USD 89.36 per barrel while the dollar index was at 99.83 virtually unchanged. Oil companies continue to buy U.S. dollars for their daily requirements while RBI continues to support the rupee at various levels daily,” Mr. Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.87, up 0.05%.

“Markets are largely in wait-and-watch mode ahead of the U.S. inflation data, with the dollar receiving some support from elevated oil prices but limited by expectations that inflation may continue to moderate,” Bhansali said.

On the domestic equity market front, Sensex dipped 35.99 points to 78,097.31 in early trade, while the Nifty skid 31.15 points to 24,444.55.

Foreign institutional investors purchased equities worth ₹258.55 crore on a net basis on Tuesday (August 11, 2026), according to exchange data.

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 appreciated 26 paise to 94.90 against U.S. dollar in early trade on Thursday (July 2, 2026), supported by easing crude oil prices.

Forex traders said the rupee opened on a positive note as crude oil prices have fallen back to levels seen before the West Asia conflict. Even global risk sentiment has stabilised compared to the panic witnessed a few weeks ago.

Foreign investors poured nearly $5.3 billion into Indian bond markets during June, marking the first month of positive inflows after three consecutive months of outflows, they said.

At the interbank foreign exchange market, the rupee opened at 94.95, then touched 94.90 against the US dollar, registering a gain of 26 paise from its previous close.

On Wednesday (July 1, 2026), the rupee depreciated 60 paise to close at 95.16 against the U.S. dollar.

“As fresh foreign capital starts entering India, markets believe the RBI may continue absorbing a significant portion of these inflows rather than allowing them to fully strengthen the rupee,” CR Forex Advisors MD Amit Pabari said.

Despite positive FII inflows and lower crude oil prices the rupee weakened sharply. If the rupee cannot strengthen on good news, any negative development could easily push USD-INR towards the 95.80–96.00 zone. “For now, the bias remains on the upside, while 94.80 is likely to act as an important support level,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.38, lower by 0.01%.

Meanwhile, Brent crude, the global oil benchmark, was trading lower by 1.13% at $70.76 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 377.40 points to 77,269.54 early trade, while the Nifty rallied 106.70 points to 24,113.25.

Foreign institutional investors sold equities worth ₹1,140.50 crore on a net basis on Wednesday, according to exchange data.

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.

India’s forex reserves dropped $7.511 billion to $681.384 billion during the week ended May 22, the RBI said on Friday.

In the previous reporting week, the kitty had dropped $8.094 billion to $688.894 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 Middle East conflict that 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.

Prime Minister Narendra Modi has also made multiple public appeals to countrymen to conserve forex by cutting down on foreign travel, limiting fuel use and refraining from gold buys for a year.

For the week ended May 22, foreign currency assets, a major component of the reserves, decreased $2.872 billion to $543.032 billion, the central bank’s data showed.

Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation of non-U.S. units, such as the euro, pound, and yen, held in foreign exchange reserves.

The value of gold reserves also declined to $4.53 billion to $114.786 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by $77 million to $18.748 billion, the apex bank said.

India’s reserve position with the IMF was also down by $33 million to $4.818 billion at the end of the reporting week, according to the RBI data.

The Indian rupee’s valuation versus other major currencies, calculated on a trade-weighted basis, has fallen to its ​lowest in more than a decade, hit by the Iran war-driven surge in ‌crude oil prices and chunky foreign portfolio outflows.

The South ​Asian currency’s 40-currency real effective exchange rate, which accounts for ⁠inflation differentials between different economies, fell to 92.72, the Reserve Bank of India’s latest bulletin released late on Thursday (April 23, 2026) showed.

The REER is now hovering well ‌below its long-run average of 98.25, pointing to a deeply undervalued rupee against historical norms.

Relatively subdued inflation in India has ‌weighed on the REER in recent months, adding to the ‌impact ⁠of the rupee’s roughly 4.5% year-to-date decline, analysts said. The ⁠currency hit a record low of 95.21 per dollar in late March.

Despite the extent of the rupee’s undervaluation, analysts see little near-term scope for a recovery.

While the rupee ​is highly undervalued on a ‌REER basis relative to historical ranges, it is likely to remain under pressure in the near term due to dollar demand “from ramp-up in oil imports to secure supplies and by sizeable equity outflows amid ‌heightened risk aversion,” analysts at BofA Global Research said in ​a note.

The March reading caps a roughly 15-point decline from late-2024 highs, marking one of the sharpest real ⁠depreciations episodes in years.

A weaker real-effective exchange rate helps make exports out of India more competitive, while increasing the cost of imports. It also offers ‌foreign investors a cheaper entry point to the currency, even while hitting the value of their existing investments in Indian equities and fixed income in foreign currency terms.

A narrower six-currency gauge suggests the rupee’s undervaluation is starker. The rupee’s 6-currency REER declined to 89.61 in March, the lowest on record for data going back to April 2015 ‌and well-below the series average of nearly 100.

The U.S., China, United Arab Emirates, ​Russia, Saudi Arabia and Singapore were the country’s 6-largest trading partners in the 2024-2025 fiscal year, trade ministrydata show.

“For ⁠long-term investors, the rupee’s current valuation provides an attractive entry point,” V. Anantha ⁠Nageswaran, India’s Chief Economic Adviser, told Bloomberg News on Thursday (April 23, 2026).

The RBI has assumed a dollar-rupee exchange rate of ‌94 in its forecasts for fiscal year 2026-27. A 5% depreciation from those levels would add about 40 bps to inflation and ​25 bps to growth, per RBI estimates.

Rupee depreciated 9 paise to an all-time low of 90.58 against U.S. dollar in early trade on Monday (December 15, 2025), weighed down by uncertainty over an India-U.S. trade deal and persistent foreign fund outflows.

Forex traders said rupee is trading with a negative bias as investors are in wait and watch mode and awaiting cues from the India-U.S. trade deal front.

At the interbank foreign exchange market, the rupee opened at 90.53 against the U.S. dollar, then fell further to an all-time intraday low of 90.58 against the greenback, registering a fall of 9 paise over its previous close.

On Friday (December 12, 2025), the rupee had slipped 17 paise to close at an all-time low of 90.49 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.05% lower at 98.35.

Brent crude, the global oil benchmark, was trading higher by 0.52% at $61.44 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex was trading 298.86 points lower at 84,968.80, while the 50-share benchmark index Nifty was down 121.40 points at 25,925.55.

Foreign Institutional Investors (FIIs) sold equities worth ₹1,114.22 crore on Friday (December 12, 2025), according to exchange data.

“Foreign Portfolio Investments (FPIs) continue to be in selling mode in equity and debt while Reserve Bank of India (RBI) has been selling dollars to fund their long positions,” said Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP.

The rupee slumped 28 paise to an all-time low of 90.43 against the U.S. dollar in early trade on Thursday (December 4, 2025), amid substantial Foreign Institutional Investor (FII) outflows and restrained intervention from the Reserve Bank of India (RBI).

Forex traders said that restrained Central Bank intervention ahead of the crucial Monetary Policy Committee (MPC) decision and significant dollar demand from importers have exerted persistent downward pressure on the rupee.

At the interbank foreign exchange market, the rupee opened at 90.36. It slipped further to a record low of 90.43 against the dollar in initial deals, registering a loss of 28 paise from its previous closing level.

Also Read |With sharp fall, Rupee is Asia’s worst performing currency, may slide to 90, say analysts

On Wednesday, the rupee breached the 90-levels for the first time to settle at a fresh all-time low of 90.15 against the greenback.

Meanwhile, Chief Economic Adviser (CEA) V. Anantha Nageswaran on Wednesday said the falling rupee is not affecting inflation or exports.

A falling rupee helps outward shipment but makes imports costlier.

Import-dependent sectors such as gems and jewellery, petroleum and electronics may see lower benefits due to a rise in input costs, putting pressure on inflationary expectations, Mr. Nageswaran said at an event on Wednesday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.14% higher at 98.99.

Brent crude, the global oil benchmark, rose 0.49% to $62.98 per barrel in futures trade.

Forex traders believe 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.

“It seems that until the trade deal comes, we may see the rupee weaken further, and it may reach the levels of 91.00 soon. With a weak rupee, we do not expect the RBI to cut rates on Friday,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

On the macroeconomic front, India’s GDP has already surprised on the upside, and the latest HSBC India Services PMI — a key index that measures whether businesses are growing or slowing — rose to 59.8 in November, supported by strong new orders.

“But the currency market isn’t trading on growth headlines anymore. It wants stability, clear policy guidance and maybe a trade deal that doesn’t keep slipping away,” said CR Forex Advisors MD Amit Pabari.

Mr. Pabari further added that “now all eyes turn to RBI Governor Sanjay Malhotra on December 5. Investors aren’t just listening to rate decisions. They want to hear his voice on the rupee.” The decision of the RBI Governor Sanjay Malhotra-headed six-member rate-setting panel will be announced on Friday.

The meeting is taking place against the backdrop of falling inflation, rising GDP growth, the rupee crossing 90 against the dollar and ongoing geopolitical tensions.

On the domestic equity market front, Sensex rose 45.99 points to 85,152.80 in early trade, while Nifty was up 14.35 points to 26,000.35.

FIIs sold equities worth ₹3,206.92 crore on a net basis on Wednesday, according to exchange data.

The rupee traded in a narrow range and edged higher by 8 paise to 87.39 against the U.S. dollar in early trade on Thursday (August 14, 2025), amid a positive trend in domestic equities.

Forex traders said the rupee is trading in a tight range and the overall bias is expected to be negative amid uncertainty over the trade tariffs issue between India and the U.S.

Moreover, investors are in a wait-and-watch mode ahead of the U.S.-Russia talks on August 15. At the interbank foreign exchange market, the rupee opened at 87.48 against the U.S. dollar, then touched 87.39, registering a gain of 8 paise over its previous close.

On Wednesday (August 13, 2025), the rupee settled at 87.47 against the U.S. dollar.

Meanwhile, Brent crude prices rose 0.38% to $65.98 per barrel in futures trade.

“The Brent oil was still below USD 66 per barrel as it regained ground after falling much more in the previous session, with the upcoming US-Russia talks raising risk premiums in the market,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.08% to 97.76.

“The US FED rate cut bets are taking the dollar index downwards,” Bhansali said, adding that “Rupee has a chance of gaining slowly towards 87.00 levels depending on the outcome of the summit of US-Russia on August 15.”

On the domestic equity market front, Sensex climbed 154.07 points to 80,693.98 in early trade, while the Nifty was up 45 points to 24,664.35.

Foreign Institutional Investors offloaded equities worth ₹3,644.43 crore on Wednesday (August 14, 2025), according to exchange data.