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 for the fourth straight day on Thursday (July 16, 2026), shedding 8 paise to settle at 96.33 (provisional) against the U.S. dollar amid volatility in global crude oil prices and a stronger greenback as the West Asia crisis intensified.

Foreign Institutional Investor outflows put further pressure on the local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 96.28 against the greenback and traded in a range of 96.22-96.37 during the session. It settled at 96.33 (provisional), down 8 paise from its previous close.

The local unit had on Wednesday (July 15, 2026), settled 9 paise lower at 96.25 against the U.S. dollar.

Crude oil prices remain elevated amid back-and-forth strikes by the U.S. and Iran across West Asia. Renewed threats to the Strait of Hormuz have shredded the interim deal to end the Iran war and could tip the region back into all-out war.

“We expect the rupee to trade with a negative bias on geopolitical tensions between the U.S. and Iran as well as elevated crude oil prices. However, Donald Trump said Iran wants to make a deal with the U.S. This may lead to some improvement in global market sentiments. Any intervention by the RBI may also support the rupee at lower levels,” Anuj Choudhary, research analyst, Mirae Asset ShareKhan, said.

“Traders may take cues from retail sales and weekly unemployment claims data from the U.S. USD-INR spot price is expected to trade in a range of ₹96.10-96.60,” he said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally up by 0.02% at 100.50.

Brent crude, the global oil benchmark, remained volatile in international markets and was trading 0.39% lower at $84.62 per barrel in futures trade.

Stock markets closed on a flat note on Thursday (July 16, 2026), with Sensex edging up a mere 1.44 points to 77,186.87, while the Nifty slipped 5.75 points to 24,072.75.

Foreign Institutional Investors on Wednesday (July 15, 2026), offloaded equities worth ₹735.83 crore in the domestic equity market, 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 depreciated 20 paise to close at 95.38 (provisional) against the U.S. dollar on Monday (July 6, 2026) as a strengthening greenback weighed on emerging market currencies.

At the interbank foreign exchange market, the Rupee opened at 95.25 against the American currency and traded in a range of 95.22-95.48 during the session.

The Rupee finally closed at 95.38 (provisional), down 20 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.

“Indian rupee declined as the U.S. dollar firmed up, as markets continue to price in one rate hike this year. However, positive domestic markets and weakness in crude oil prices supported the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

Mr. Choudhary further added that “hedging demand from importers may cap sharp upside. Traders may take cues from ISM services PMI data from the U.S. USD-INR spot price is expected to trade in a range of 95.10 to 95.60”.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.12, up 0.26%.

Brent crude, the global oil benchmark, was trading lower by 0.76% at $71.57 per barrel in futures trade.

On the domestic equity market front, the Sensex jumped 521.16 points to settle at 78,285.07, while the Nifty rose 159.50 points to 24,430.35.

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.

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.

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 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.