The rupee declined 4 paise to close at 96.57 (provisional) against the U.S. dollar on Thursday (July 23, 2026), as heightened hostilities in West Asia kept global crude oil prices elevated.

However, a likely intervention by the RBI provided support to the local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 96.53 and traded in a narrow range of 96.45-96.59 during the day before eventually settling at 96.57 (provisional), down 4 paise from its previous close.

The rupee depreciated by 28 paise to close at 96.53 against the U.S. dollar on Wednesday (July 22, 2026).

“The rupee traded with a negative bias on weak domestic markets and a surge in crude oil prices, which continued to rise as the U.S. struck Iran for the 12th consecutive day while Iran continued to strike U.S. facilities in the Gulf,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.

“However, diplomatic talks between the two nations may prevent a sharp fall in the rupee. USD-INR spot price is expected to trade in a range of ₹96.30 to ₹96.85,” Mr. Choudhary said.

V. K. Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said, “The negative factor impacting the rupee is the sharp spike in Brent crude following the escalation of the conflict in West Asia, particularly the attack on Saudi oil tankers by the Houthis.”

RBI’s intervention in the market will prevent sharp depreciation in the rupee, he added.

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

Brent crude, the global oil benchmark, was trading 2.21% higher at $96.15 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.

On the domestic equity market front, Sensex extended losses on Thursday (July 23, 2026) declining 363.66 points to settle at 76,391.39, while the Nifty was down 126.65 points to 23,869.60.

Foreign Institutional Investors offloaded equities worth ₹819.20 crore on a net basis on Wednesday (July 22, 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 weakened by 5 paise to 90.22 against the U.S. dollar in early trade on Tuesday (January 13, 2026), amid a strengthening American currency, higher crude oil prices and incessant outflow of foreign funds.

An unprecedented geopolitical concern and global trade uncertainties have accelerated the dollar demand worldwide, adding strength to the greenback and putting pressure on the Indian currency, analysts said.

At the interbank foreign exchange, the rupee opened at 90.24 and gained slightly to trade at 90.22 against the greenback in early deals, registering a loss of 5 paise from its previous closing level.

On Monday (January 12, 2026), the rupee ended 1 paisa higher at 90.17 against the U.S. dollar.

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, was trading 0.11 per cent higher at 98.73.

Brent crude, the global oil benchmark, was trading 0.28% higher at $64.05 per barrel in futures trade.

Foreign institutional investors offloaded equities worth ₹3,638.40 crore on Monday (January 12), according to exchange data.

On the domestic equity market front, the 30-share benchmark index Sensex rose 125.96 points or 0.15% to 84,004.13, while the Nifty advanced 47.25 points or 0.18% to 25,837.50.

Analysts attributed the buying trend in equities to the positive cues triggered by strong domestic macroeconomic numbers.

According to government data released on Monday, India’s retail inflation rose to a three-month high of 1.33% in December, mainly due to higher prices of food items, but remained below the Reserve Bank of India’s lower tolerance level.

Also, the latest data from the Income Tax Department showed the government’s net direct tax collection grew about 8.82% to over ₹18.38 lakh crore in the current fiscal till January 11 due to slower refunds and better corporate tax mop-up.

Net corporate tax collection grew 12.4% to over ₹8.63 lakh crore, and taxes from non-corporates, including individuals, rose 6.39% to about ₹9.30 lakh crore.