The rupee opened with a negative bias amid a strong dollar and rising U.S. treasury yields and depreciated 18 paise to 96.38 against the U.S. dollar as market sentiments continue to dampen amid simmering tensions between the U.S. and Iran.

Forex traders said rupee remains vulnerable to the rise in crude oil prices as also the closure of the Strait of Hormuz hampering its exports and imports to the Gulf countries.

At the interbank foreign exchange market, the rupee opened at 96.38 against the U.S. dollar, registering a fall of 18 paise from its previous close.

On Monday (May 18, 2026), the Indian rupee weakened further and closed at a record low of 96.20 against the U.S. dollar.

“The market’s biggest challenge right now is not just direction — it’s confidence. Until there is visible cooling in global tensions and stability in foreign flows, the rupee may continue trading under pressure with volatility staying elevated,” CR Forex Advisors MD Amit Pabari said.

Mr. Pabari further added that technically, 94.80–95.10 is expected to act as an important support zone for USD-INR. However, with no meaningful signs of easing in global risk factors, the pair now appears to be gradually shifting its focus toward the 97 mark.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.10, lower by 0.09% due to simmering Iran tensions.

Brent crude, the global oil benchmark, was trading down 1.91% at $109.96 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 366.71 points to 75,706.88 in early trade, while the Nifty advanced 107.45 points to 23,760.

Foreign Institutional Investors remained net buyers for the third straight session, purchasing equities worth ₹2,813.69 crore on Monday (May 18, 2026), according to exchange data.

Meanwhile, a senior petroleum ministry official on Monday (May 18, 2026) said India has been purchasing Russian oil irrespective of U.S. sanctions waivers and will continue to do so based on commercial viability and energy security needs.

“Regarding the American waiver on Russia, I would like to emphasise that we have been purchasing from Russia earlier… before waiver also, during waiver also, and now also,” Sujata Sharma, joint secretary in the petroleum ministry, told reporters at a media briefing.

The rupee weakened further and fell to a record low of 95.73 (provisional) against the U.S. dollar on Thursday (May 14, 2026), amid a strong dollar and worries over inflation amid elevated energy prices.

Forex traders said the rupee is expected to trade with a negative bias amid inflation concerns and the strength of the U.S. dollar in the overseas market.

The West Asia crisis and the blockade of the Strait of Hormuz have disrupted crude petroleum imports into India. Also, the sharp rise in crude prices has made fuel imports costlier.

The rupee has become the worst-performing currency in Asia for the year, registering a loss of over 6% so far this year, as elevated crude oil prices, a strong dollar and concerns over the West Asia crisis weighed on investor sentiments, traders said.

At the interbank foreign exchange market, the rupee opened lower at 95.74 against the American currency.

In a volatile trade, the USD/INR pair witnessed an intra-day high of 95.61 and an all-time intraday low of 95.96 against the greenback before settling at 95.73 (provisional), down 7 paise from its previous close.

The rupee on Wednesday (May 13, 2026) slipped to an all-time low of 95.80 against the U.S. dollar, and settled at 95.66 against the greenback.

“We expect the rupee to trade with a negative bias amid inflation concerns and a strong dollar. Rising inflation in the U.S. dimmed expectations of a rate cut by the Fed,” said Anuj Choudhary, Research analyst at Mirae Asset ShareKhan.

Mr. Choudhary said geopolitical tensions between the U.S. and Iran and foreign fund outflows may also pressurise the rupee.

However, any intervention by the RBI and import duty hike on gold and silver may support the rupee at lower levels. USD/INR spot price is expected to trade in a range of 95.50 to 96.10, Mr. Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.51, down 0.01%.

Brent crude, the global oil benchmark, was trading higher by 0.50% at $106.16 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 789.74 points to settle at 75,398.72, while the Nifty climbed 277 points to 23,689.60.

Foreign Institutional Investors offloaded equities worth ₹4,703.15 crore on Wednesday (May 13, 2026), according to exchange data.

On the domestic macroeconomic front, wholesale price inflation shot up to a 42-month high of 8.3% in April on the back of a spike in energy prices that followed the disruptions caused by the West Asia conflict.

Wholesale price index (WPI) inflation was 3.88% in March, while it was 0.85% in April last year.

“Positive rate of inflation in April 2026 is primarily due to an increase in prices of mineral oils, crude petroleum & natural gas, basic metals, other manufacturing and non-food articles, etc,” data released by the commerce and industry ministry showed.

The rupee depreciated 45 paise to 94.67 against the U.S. dollar in early trade on Friday (May 8, 2026), as Brent crude prices rose back to $101.00 per barrel after U.S. and Iranian forces exchanged fire near the Strait of Hormuz.

Forex traders said investor sentiments were affected after Iran accused the U.S. of violating the ceasefire as the U.S. carried out retaliatory strikes with new attacks, which took place in the Strait of Hormuz and civilian areas, while President Donald Trump said the ceasefire was still in effect.

Brent oil prices, which had fallen to $98 per barrel amid the U.S.-Iran peace deal, edged higher to $101 per barrel as investors weighed the prospects for a West Asia peace deal.

At the interbank foreign exchange market, the rupee opened at 94.58 against the U.S. dollar, then lost momentum and touched 94.67 against the American currency, registering a fall of 45 paise over its previous close.

On Thursday (May 7, 2026), the rupee pared initial losses and settled the day on a positive note, up 27 paise at 94.22 against the greenback.

“Brent oil prices moved higher by more than 2% in Asian trade on Friday (May 8, 2026) after U.S. and Iranian forces exchanged fire near the Strait of Hormuz despite President Trump insisting that the month-old ceasefire remained in effect,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Mr. Bhansali further added that the rise in oil prices took USD/INR higher towards 94.43 this morning in Asian trading, and the dollar index also moved higher towards 98.22 while Asian currencies were a tad weaker.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.20, up 0.14%.

Brent crude, the global oil benchmark, was trading higher by 1.08% at $101.14 per barrel in futures trade.

Foreign Institutional Investors offloaded equities worth ₹340.89 crore on Thursday (May 7, 2026), according to exchange data.

The rupee depreciated 16 paise to close at 87.82 (provisional) against the U.S. dollar on Tuesday (August 5, 2025), as risk-off sentiment deepened after U.S. President Donald Trump renewed his threat to raise tariffs on Indian goods over New Delhi’s continued purchases of Russian oil.

Forex traders said the rupee is likely to slide further as India-U.S. trade deal uncertainty continues to dent domestic market sentiments.

Moreover, weak equity markets dented investors’ sentiments further. However, the domestic unit pared initial losses on supposed intervention by the Reserve Bank of India (RBI).

A soft U.S. dollar and overnight decline in crude oil prices also cushioned the downside to some extent, they said.

At the interbank foreign exchange, the domestic unit opened at 87.95 against the greenback, and during the day, it touched an intra-day high of 87.75 against the American currency.

At the end of Tuesday’s (August 5, 2025) trading session, the domestic unit was at 87.82 (provisional), down 16 paise over its previous close.

On Monday (August 3, 2025), the rupee depreciated 48 paise to close at 87.66 against the U.S. dollar.

In a fresh trade threat against India, President Donald Trump on Monday (August 3, 2025) said he will “substantially” raise U.S. tariffs on New Delhi, accusing it of buying massive amounts of Russian oil and selling it for big profits.

Last week, the Trump administration slapped a 25% duty on all Indian goods. The U.S. president also announced a penalty for buying “vast majority” of Russian military equipment and crude oil.

“We expect the rupee to continue to slide as India-U.S. trade deal uncertainty continues to dent domestic market sentiments. Weak tone in the domestic equities and FII outflows may further pressurise the rupee,” Anuj Choudhary, Research Analyst, Commodities Research, Mirae Asset Sharekhan, said.

Mr. Choudhary added that “the rupee may also remain weak ahead of the RBI’s monetary policy. Market expects a rate cut by the central bank. However, overall weakness in the U.S. dollar amid rising odds of a rate cut by the Fed in September may support the rupee at lower levels”.

Meanwhile, investors remain cautious ahead of the RBI monetary policy decision this week.

RBI Governor Sanjay Malhotra-headed rate-setting panel on Monday (August 3, 2025) started the three-day deliberations to decide the next bi-monthly monetary policy.

The six-member Monetary Policy Committee (MPC) is scheduled to announce the next bi-monthly policy rate on Wednesday (August 6, 2025).

Meanwhile, Brent crude prices fell 0.97% to $68.09 per barrel in futures trade, after OPEC+ agreed to hike another large output increase in September, adding to oversupply concerns after U.S. data showed lacklustre fuel demand.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18% to 98.68.

In the domestic equity market, the 30-share BSE Sensex advanced 308.47 points, or 0.38%, to close at 80,710.25, while the Nifty rose 73.20 points, or 0.30%, to settle at 24,649.55.

Foreign institutional investors (FIIs) offloaded equities worth $2,566.51 crore on a net basis on Monday (August 3, 2025), according to exchange data.

The rupee depreciated 12 paise to close at 86.82 (provisional) against the U.S. dollar on Tuesday (July 29, 2025), weighed down by a jump in the U.S. dollar index and a surge in crude oil prices.

Forex traders said month-end dollar demand from Oil Marketing Companies (OMCs) and importers further pressurised the rupee.

Moreover, investors remained on the sidelines ahead of the U.S. Federal Reserve and Bank of Japan’s monetary policy decision this week.

At the interbank foreign exchange, the domestic unit opened at 86.76 against the greenback and touched an intra-day low of 86.92 against the greenback.

At the end of Tuesday’s (July 29, 2025) trading session, the local unit settled at 86.82 (provisional), down 12 paise over its previous closing price.

On Monday (July 28, 2025), the rupee had settled at 86.70 against the dollar.

“The Indian rupee fell by nearly 20 paise on a jump in the U.S. dollar index and a surge in crude oil prices. The U.S. dollar rallied on optimism over the U.S.-EU trade deal. However, a bounce back in the domestic equities after falling sharply over the past three sessions cushioned the downside,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.

Forex traders said investors traded cautiously awaiting the outcome of India-U.S. trade talks ahead of the August 1 deadline.

“The lingering trade deal between India and the U.S. may continue to weigh on the rupee. Rising crude oil prices and foreign outflows may also pressurise the rupee. FIIs have offloaded stocks worth nearly ₹37,000 crore till date, the biggest selling since February 2025,” Mr. Choudhary added.

If the discussions fail or get delayed, Indian exporters could face fresh pressure — adding to the rupee’s challenges.

However, if a deal is reached, it could offer a much-needed breather. Until then, the uncertainty is likely to keep market participants cautious.

“Month-end dollar demand from OMCs and importers may further pressurise the rupee,” Mr. Choudhary said, adding, “investors may remain cautious ahead of the U.S. Federal Reserve and Bank of Japan’s monetary policy decision this week.”

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose marginally by 0.13% to 98.75.

Brent crude, the global oil benchmark, went up by 0.46% to $70.36 per barrel in futures trade, as developing trade agreements eased tariff concerns and boosted future energy demands.

In the domestic equity market, the 30-share BSE Sensex advanced 446.93 points, or 0.55%, to close at 81,337.95, while the Nifty rose 140.20 points, or 0.57%, to settle at 24,821.10.

Foreign institutional investors (FIIs) offloaded equities worth ₹6,082.47 crore on a net basis on Monday (July 28, 2025), according to exchange data.