The rupee declined 8 paise to settle at 96.43 (provisional) against the U.S. dollar on Tuesday (October 6, 2026) amid sustained outflows of foreign capital and uncertainties over a U.S.-Iran deal.

However, a drop in global crude oil prices and a weaker greenback capped the rupee’s fall, according to forex traders.

At the interbank foreign exchange, the rupee opened at 96.29 and traded in the range of 96.29-96.45 before eventually settling at 96.43 (provisional), down 8 paise from its previous close.

The rupee depreciated 10 paise to close at 96.35 against the U.S. dollar on Monday.

“The rupee traded on a weak note but recovered from day’s lows on sharp fall in crude oil prices and softening of U.S. dollar and U.S. treasury yields,” Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan, said.

“We expect the rupee to trade with a negative bias on uncertainty over the U.S. and Iran deal and elevated dollar and U.S. treasury yields. However, softening of crude oil prices and trimming odds of a rate hike by the Fed in October may support the rupee at lower levels,” he said, adding that the USD-INR spot price is expected to trade in a range of ₹96.15 to ₹96.60.

The Reserve Bank’s Monetary Policy Committee began its three-day meeting on Monday and is likely to announce a 25 basis point rate hike on Wednesday, in line with other central banks’ hawkish stance amid escalating conflict in West Asia that poses risks for domestic inflation.

The last repo rate hike was in February 2023, when the RBI raised the rate by 0.25% to 6.50%. It kept the rate unchanged through 2023-24 before beginning its rate-cut cycle in 2025. Currently, the RBI’s policy repo rate stands at 5.25 per cent.

Meanwhile, the dollar index, which gauges the strength of the greenback against a basket of six currencies, was trading at 102.03, lower by 0.13%.

Brent crude, the global oil benchmark, was trading lower by 1.68% at $98.63 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 685.34 points to settle at 73,067.81, while the Nifty rose 220.35 points to 22,776.10.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹4,699.14 crore on a net basis on Monday, according to exchange data.

The rupee declined 6 paise to 96.31 against the U.S. dollar in early trade on Thursday (July 16, 2026) amid volatility in global crude oil prices and a stronger greenback with the West Asia crisis showing no signs of abating.

FII outflows continued to weigh on the local unit while a positive start to the day at the domestic equity markets provided support, according to forex traders.

At the interbank foreign exchange, the rupee opened at 96.28 against the greenback before slipping further to 96.31 from its previous close.

The local unit had on Wednesday extended its slide for the third straight day and settled 9 paise lower at 96.25 against the U.S. dollar.

The United States intensified its strikes targeting Iran early on Thursday, hitting targets further north as American forces also fired into a ship it accused of trying to break its naval blockade on the Islamic Republic. Iran retaliated with missile and drone fire targeting Bahrain and Kuwait before dawn.

Days of back-and-forth strikes by the U.S. and Iran across West Asia – and 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. Jordan’s military said in the morning that it shot down eight missiles launched by Iran targeting the kingdom.

“The rupee opened at 96.28 despite the dollar index depreciating while Brent oil prices are nearer to $85 per barrel, indicating inherent dollar demand that the currency pair is showing,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally up by 0.01% at 100.49.

Brent crude, the global oil benchmark, remained volatile and at the time of filing this report was trading 0.31% down at $84.69 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 185.77 points to 77,400.40 in early trade while the Nifty was up 42.15 points to 24,132.60.

Foreign Institutional Investors on Wednesday offloaded equities worth ₹735.83 crore in the domestic equity market, according to exchange data.

The rupee pared initial losses and settled for the day on a positive note, higher by 23 paise at 94.26 (provisional) against the greenback on Thursday (May 7, 2026), as Brent crude and the U.S. dollar index retreated from their elevated levels.

Forex traders said Brent oil prices have fallen below $100 per barrel on a rise in investor risk appetite in global markets on hopes of peace between the U.S. and Iran.

However, factors such as unabated foreign capital outflows and safe-haven dollar demand from importers capped sharp gains for the rupee.

At the interbank foreign exchange market, the rupee witnessed high volatility. It opened at 94.77 against the U.S. dollar, registering a fall of 28 paise over its previous close.

In intraday trade, the USD/INR pair touched an intraday low of 94.90 and a high of 94.08 against the American currency.

The rupee finally settled at 94.26 (provisional), registering a rise of 23 paise over its previous close.

On Wednesday (May 6), the rupee appreciated 69 paise to close at 94.49 against the U.S. dollar.

“We expect the rupee to trade with a positive bias on improved global risk sentiments amid easing tensions between the U.S. and Iran and softening of global crude oil prices. A decline in the U.S. dollar may also support the rupee.

“However, dollar demand from importers and FII outflows may cap sharp gains. USD-INR spot price is expected to trade in a range of 93.80 to 94.40,” said Anuj Choudhary, Research analyst at Mirae Asset ShareKhan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 97.86, down 0.16 per cent.

Brent crude, the global oil benchmark, was trading lower by 2.23% at $99.01 per barrel in futures trade.

On the domestic equity market front, Sensex declined 114 points to settle at 77,844.52, and the Nifty was down 4.30 points to 24,326.65.

Foreign Institutional Investors offloaded equities worth ₹5,834.90 crore on Wednesday, according to exchange data.