The rupee pared initial gains and settled for the day with gains of just 3 paise at 95.70 against the U.S. dollar on Thursday (August 20, 2026), as the support from the weaker dollar index was negated by elevated crude oil prices.

Forex traders said while a weaker U.S. dollar eases some depreciation pressure on the domestic currency, crude oil hovering above $90 would continue to keep pressure on India’s import bill.

The dollar index fell to its lowest level since late May after the U.S. Treasury announced that it would double its buyback operations for longer-dated Treasury bonds, pushing U.S. long-term yields lower and reducing the dollar’s yield advantage.

At the interbank foreign exchange, the rupee opened at 95.57 against the greenback and traded in a range of 95.56-95.72 during the session. It eventually settled at 95.70 (provisional), higher by 3 paise from its previous close.

On Wednesday (August 19, 2026), the rupee stayed almost flat, ending just 1 paisa higher at 95.73 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.61, lower by 0.22 per cent.

Brent crude, the global oil benchmark, was trading higher by 2.22% at $93.65 per barrel in futures trade.

According to Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, the rupee opened higher on weak dollar and positive domestic markets. However, rupee pared initial gains on rising crude oil prices.

“We expect the rupee to trade with a slight negative bias on renewed geopolitical tensions between the U.S. and Iran after U.S. President Donald Trump announced crushing economic sanctions against Iran.

“Rising crude oil prices and inflation worries may also drag the rupee lower. However, a falling the US dollar amid diminishing rate hike expectations may support the rupee at lower levels. Traders may take cues from weekly unemployment claims data from the US. USDINR spot price is expected to trade in a range of 95.50 to 96,” Mr. Choudhary said.

On the domestic market front, Sensex jumped 628.04 points to settle at 77,537.72, while the Nifty surged 153.55 points to 24,231.85.

Foreign institutional investors purchased equities worth ₹407.99 crore on a net basis on Wednesday (August 19, 2026), according to exchange data.

The rupee fell 6 paise to 95.42 against the U.S. dollar in early trade on Wednesday (August 12, 2026), weighed down by the sharp rise in Brent crude toward $90/bbl, as hopes of a quick U.S.-Iran agreement and reopening of the Strait of Hormuz faded.

Also Read: The solution to the falling rupee lies in diplomacy

Forex traders said the principal driver behind the rise in Brent crude prices is the uncertainty over the Strait of Hormuz.

Markets are increasingly sceptical about a quick U.S.-Iran agreement, while reports of attacks on shipping have renewed concerns about physical supply, they said.

At the interbank foreign exchange, the rupee opened at 95.40 before slipping further to 95.42, down 6 paise from its previous close.

On Tuesday (August 11, 2026), the rupee declined 6 paise to settle at 95.36 against the U.S. dollar. With Brent now near $90 per barrel, INR/USD at 95.50 becomes the immediate level to watch, followed by 95.80–96.00 if oil remains elevated, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

Brent crude, the global oil benchmark, was trading higher by 1% at $89.80 per barrel in futures trade.

“Rupee opened at 95.42 with oil prices slightly down at USD 89.36 per barrel while the dollar index was at 99.83 virtually unchanged. Oil companies continue to buy U.S. dollars for their daily requirements while RBI continues to support the rupee at various levels daily,” Mr. Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.87, up 0.05%.

“Markets are largely in wait-and-watch mode ahead of the U.S. inflation data, with the dollar receiving some support from elevated oil prices but limited by expectations that inflation may continue to moderate,” Bhansali said.

On the domestic equity market front, Sensex dipped 35.99 points to 78,097.31 in early trade, while the Nifty skid 31.15 points to 24,444.55.

Foreign institutional investors purchased equities worth ₹258.55 crore on a net basis on Tuesday (August 11, 2026), according to exchange data.

The rupee appreciated 31 paise to 94.29 against the U.S. dollar in early trade on Wednesday (June 17, 2026) as Brent crude oil prices and the U.S. dollar index retreated further from their elevated levels.

Forex traders said the rupee opened on a positive note as Brent crude has fallen to near $79 per barrel — a three-month low — as markets price in the reopening of the Strait of Hormuz following the US-Iran framework.

At the interbank foreign exchange market the rupee opened at 94.46, then touched 94.29, registering a gain of 31 paise from its previous close.

On Tuesday (June 16), the rupee ended 2 paise lower at 94.60 against the U.S. dollar.

In the last three sessions the rupee has recovered 130 paise since the U.S.-Iran deal framework emerged.

“The rupee’s bias has shifted. On the upside, 95.00-95.30 is now a strong resistance zone for USDINR. With expectations of strong foreign capital inflows and USDINR having decisively broken below the 94.80 level, the pair could gradually move towards the 94.00–93.80 zone in the coming days,” CR Forex Advisors MD Amit Pabari said.

Mr. Pabari further added that the signing of the U.S.-Iran agreement in Geneva on June 19 remains the event to watch. “Until then, the recovery is real but the ground is not yet firm,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 0.01% down at 99.52.

Brent crude, the global oil benchmark, was trading lower by 0.37% at $78.67 per barrel in futures trade.

On the domestic equity market front, Sensex was up 271.61 points to 77,080.09 in opening trade; Nifty advances 55.35 points to 24,044.50.

Foreign institutional investors offloaded equities worth ₹749.18 crore on a net basis on Tuesday (June 17, 2026), according to exchange data.

In global developments, Vice-President J.D. Vance will lead the U.S. delegation for the in-person signing of the peace deal with Iran in Switzerland on Friday, President Donald Trump said.

Both Mr. Trump and Mr. Vance have electronically signed the framework agreement with Iran’s lead negotiator Mohammad Bagher Ghalibaf, according to a senior U.S. official quoted by The New York Times.

The rupee surged 77 paise to close at 95.08 (provisional) against the greenback on Friday (June 12, 2026) as global oil prices fell sharply after U.S. President Donald Trump indicated an imminent deal with Iran.

A firm trend in domestic equity markets and a weaker American currency also supported the rupee during the day, forex traders said.

Mr. Trump has said a deal to end the war with Iran is nearly complete, and is expected to be signed over the weekend in Europe, as he called off military strikes on the Islamic Republic hours after threatening to take control of its oil industry.

Following Mr. Trump’s remarks, international crude oil prices fell with Brent crude — the global oil benchmark — trading lower by 4.25% at $86.54 per barrel in futures trade.

At the interbank foreign exchange, the rupee opened at 95.40 and traded in the range of 94.95-95.53 before settling at 95.08 (provisional), up 77 paise from its previous close.

The rupee had plunged 60 paise to settle at 95.85 against the U.S. dollar on Thursday (June 11, 2026).

“The rupee rose as oil prices fell to $88.58 levels after three months. The rupee has hovered between 95 and 95.80 in the past few days, moving with the prices of oil,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

“For Monday (June 8, 2026), we expect the rupee to remain in the range of 94.75 to 95.75. The one-month premiums were slightly higher at 2.95% while the one-year premiums were at 2.85%,” he said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.65, down 0.20%.

On the domestic equity market front, Sensex soared 1,695.40 points to settle at 75,527.95, and Nifty climbed 461.30 points to 23,622.90.

Foreign institutional investors offloaded equities worth ₹1,987.09 crore on a net basis on Thursday (June 11, 2026), according to exchange data.

The rupee rose for the second consecutive session on Friday (May 22, 2026) to close at 95.73 (provisional) against the U.S. dollar on softening of crude oil prices and supposed intervention by the Reserve Bank.

Forex traders said markets found some comfort after comments from U.S. Secretary of State Marco Rubio hinted that diplomatic talks linked to the Iran situation were moving in a constructive direction.

Moreover, positive domestic equities and a decline in U.S. treasury yields also supported the rupee.

At the interbank foreign exchange market, the rupee opened at 96.30 against the U.S. dollar, then touched an intraday high of 95.30 and a low of 95.68 against the U.S. dollar in intraday trade.

At the end of the trading session on Friday (May 22, 2026), the rupee was quoted at 95.73 (provisional), higher by 63 paise from its previous close.

On Thursday (May 21, 2026), the rupee rebounded 50 paise from its all-time closing low to settle at 96.36 against the U.S. dollar.

“We expect the rupee to trade with a negative bias on uncertainty between U.S. and Iran, which may pressurise the rupee. However, optimism over peace deal and softening of crude oil prices may support the rupee at lower levels.

“U.S. Treasury yields are also easing, which may also support the domestic currency. USD-INR spot price is expected to trade in a range of 95.50 to 96.30,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.

Sahil Kapoor, Head of Products and Market Strategist, SVP, DSP Mutual Fund, in a research note, said it is the time to buy rupee assets and not bet against them.

“Currencies, interest rates, and flows are inherently cyclical. Betting against the rupee at these depressed REER levels and tight inflation differentials is a low-probability trade. Conversely, the data suggests it is time to allocate toward rupee-denominated assets across both equities and bonds,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.29, down 0.04%.

Brent crude, the global oil benchmark, was trading up 2.18 per cent at $104.82 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 231.99 points to settle at 75,415.35, while the Nifty advanced 64.60 points to 23,719.30

Foreign Institutional Investors offloaded equities worth ₹1,891.21 crore on a net basis on Thursday (May 21, 2026), according to exchange data.

Meanwhile, Commerce and Industry Minister Piyush Goyal said the government is considering several steps to contain the widening Current Account Deficit (CAD) amid a weakening rupee and widening trade deficit.

Declining for the ninth consecutive session, the rupee depreciated 13 paise to close at a fresh lifetime low of 96.83 (provisional) against the U.S. dollar on Wednesday (May 20, 2026) as elevated global crude prices amid the West Asia crisis stoked inflation worries.

At the interbank foreign exchange market, the rupee opened at 96.89 against the U.S. dollar, then lost further ground to touch a record low of 96.95 and a high of 96.65, before settling at 96.83 (provisional), registering a fall of 13 paise over its previous close.

In the previous session, the rupee tumbled 50 paise to settle at 96.70 against the dollar.

“Indian rupee hit fresh lows on a strong dollar and a surge in U.S. treasury yields. U.S. 30-year treasury yields rose to a two-decade high, while the 10-year yields rose to a 16-month high.

“This led to inflation worries and sell-off in global markets, making the markets risk-averse,” said Anuj Choudhary, Research Analyst, Commodities Research at Mirae Asset Sharekhan.

“We expect the rupee to trade with a negative bias on risk aversion in the global markets amid inflation worries. A strong dollar and rising U.S. Treasury yields raised inflation concerns and trimmed rate cut expectations. USD/INR spot price is expected to trade in a range of ₹96.5 to ₹97.10,” he added.

The rupee’s sharp decline has emerged as one of the biggest economic warning signs for policymakers, investors and businesses. Once considered among Asia’s more stable currencies, the rupee has now become one of the worst-performing emerging market currencies this year, pressured by a toxic mix of expensive oil, capital outflows, widening trade deficits and a surging U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.42, higher by 0.09%.

Brent crude, the global oil benchmark, was trading down 2.77% at $109.95 per barrel in futures trade.

The U.S. Senate advanced legislation on Tuesday (May 19, 2026) that seeks to force President Donald Trump to withdraw from the Iran war, as a growing number of Republicans defied Trump’s wishes.

On the domestic equity market front, Sensex rose by 117.54 points to settle at 75,318.39, and Nifty was up 41 points to 23,659.

Foreign Institutional Investors turned net sellers after three sessions of buying and offloaded equities worth ₹2,457.49 crore on Tuesday (May 19, 2026), according to exchange data.

The rupee opened on a weaker note and fell 30 paise to 95.94 on Friday (May 15, 2026) after hitting new lows over three straight sessions, as elevated crude oil prices, a strong dollar, and concerns over the West Asia crisis weighed on investor sentiment.

Forex traders said USD-INR is under pressure and hovering very close to the 96 mark as dollar buying continues amid upside in oil prices.

Moreover, the Summit between U.S. President Trump and Chinese President Xi did not yield any fruitful results, particularly on the U.S.-Iran front, denting investor sentiments further.

The USD/INR pair, which had slumped to 95.96 against the American currency on Thursday (May 14, 2026), recovered sharply after reports surfaced that India is considering a major cut in taxes paid by foreign investors on Indian bonds.

On Friday (May 15, 2026), the government hiked the petrol and diesel prices by ₹3 per litre in the latest move to curb the demand of these fuels.

At the interbank foreign exchange market, the rupee opened at 95.86, then fell further to 95.94 against the U.S. dollar, registering a fall of 30 paise from its previous close.

The rupee weakened to a fresh record low of 95.96 before closing with a marginal gain of 2 paise at 95.64 against the U.S. dollar on Thursday (May 14, 2026).

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.05, higher by 0.24%.

Brent crude, the global oil benchmark, was trading up 1.30% at $107.09 per barrel in futures trade.

On the domestic equity market front, Sensex rose 239.14 points to 75,637.86 in early trade, while the Nifty was trading 78.30 points higher at 23,767.90.

“The Dollar Index rose for a fourth straight session after strong US retail sales and stable labour market data reduced expectations of aggressive Federal Reserve rate cuts,” CR Forex Advisors MD – Amit Pabari said.

Adding another layer of uncertainty for the rupee was the closely watched meeting between U.S. President Donald Trump and Chinese President Xi Jinping. While both sides tried to maintain stability, disagreements over Taiwan and China’s continued oil purchases from Iran kept geopolitical concerns alive.

“And whenever uncertainty rises globally, the dollar usually becomes the market’s preferred safe place. For now, the rupee remains caught between policy support at home and global pressure from oil, inflation, and the dollar abroad,” Pabari added.

Foreign Institutional Investors turned net buyers purchasing equities worth ₹187.46 crore on Thursday (May 14, 2026), according to exchange data.

Meanwhile, the government on Thursday (May 14, 2026) imposed a limit of 100 kg on gold imports under the Advance Authorisation scheme, which allows jewellery exporters to import raw or input materials at zero duty.

The government has tightened the conditions for issuing and monitoring advance authorisation for the import of gold. Earlier, there was no limit on gold imports under the scheme.

The Advance Authorisation scheme allows the duty-free import of inputs that are incorporated into an export product. In addition to any inputs, packaging material, fuel, oil, and catalyst that are consumed or utilised in the process of production of export products, are also allowed.