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 appreciated 14 paise to 86.93 against the U.S. dollar in early trade on Thursday (August 21, 2025), on positive domestic equities and a rise in risk-on sentiments.

Forex traders said the rupee is trading with a positive bias on a rise in risk appetite in the global markets amid hopes of peace between Russia and Ukraine.

Moreover, investors are awaiting cues on the geopolitical front as well as the U.S. FED stance on interest rates.

At the interbank foreign exchange, the rupee opened at 87.04, then touched an early high of 86.93, registering a gain of 14 paise over its previous close.

On Wednesday (August 20, 2025), the rupee settled on a higher note at 87.07 against the U.S. dollar.

“The rupee may remain cautious, pressured by Fed-driven dollar strength and FII outflows, but supported by easing India-China tension. If the rupee breaches 86.95, it could move toward 86.80 level, while a break above the 87.10 resistance may open the way for a pullback toward the 87.40 level,” CR Forex Advisors MD Amit Pabari said.

India and China have reached a new understanding on the management and control of the frontier during Foreign Minister Wang Yi’s visit to New Delhi, the Chinese Foreign Ministry said on Wednesday (August 20).

Mr. Wang visited New Delhi on August 18 and 19, during which he held extensive talks with NSA Ajit Doval and External Affairs Minister S. Jaishankar.

Summing up the outcome of Mr. Wang’s visit, Chinese Foreign Ministry spokesperson Mao Ning told a media briefing that the two sides also agreed on resuming dialogue mechanisms in various fields, deepening mutually beneficial cooperation, upholding multilateralism, jointly dealing with global challenges and opposing unilateral bullying acts.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.08% to 98.30.

Brent crude, the global oil benchmark, was trading 0.37% higher to $67.09 per barrel in futures trade, as investors remained focused on the Ukraine peace push with a bigger-than-expected weekly drop in U.S. crude inventories and sanctions on Russia remaining in place for now.

Traders are focussed on whether U.S. Fed Chief Jerome Powell will push back against market expectations for a rate cut on the September 16-17 meeting when he speaks at the Jackson Hole Symposium on Friday (August 22).

On the domestic equity market front, the Sensex climbed 373.33 points to 82,231.17 in early trade, while the Nifty was up 94.3 points to 25,144.85.

Foreign Institutional Investors offloaded equities worth ₹1,100.09 crore on Wednesday (August 20), according to exchange data.