The rupee fell 7 paise to close at 94.50 (provisional) against the American currency on Monday (September 7, 2026) as surging crude oil prices and global headwinds offset the support from strong FCNR dollar inflows.

Forex traders said the rupee saw modest gains in initial trading on foreign inflows, but a negative trend in domestic equities and rising crude oil prices weighed on investor sentiment.

At the interbank foreign exchange market, the rupee opened at 94.40 against the U.S. dollar. During the day, the local unit touched an intraday high of 94.38 and a low of 94.50. The rupee finally settled at 94.50 (provisional), down 7 paise from its previous close.

On Friday (September 4, 2026), the rupee settled higher by 8 paise at 94.43 against the U.S. dollar.

“The Indian rupee traded flat to positive on foreign inflows and a soft dollar. However, a weak tone in domestic markets and a surge in crude oil prices capped sharp gains,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

According to Mr. Choudhary, the rupee is likely to trade with a positive bias on optimism over foreign inflows and a weak dollar.

“Iran said that the deal with Oman regarding the Strait of Hormuz is in its final stages. This may ease crude oil prices, which may further support the rupee. However, tensions between the US and Iran may continue to pressurise the rupee at higher levels. Investors may now focus on inflation data from the U.S. and India,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.90, lower by 0.27%.

Brent crude, the global oil benchmark, was trading higher by 0.58% at $96.84 per barrel in futures trade.

On the domestic equities market front, Sensex dropped 382.62 points to settle at 76,132.81, while Nifty fell 118.55 points to 23,779.15.

Foreign institutional investors (FIIs) offloaded equities worth ₹3,111.94 crore on a net basis on Friday (September 4), according to exchange data.

India’s forex reserves jumped $11.475 billion to an all-time high of $740.803 billion during the week ended August 28, the RBI said on Friday (September 4).

The rupee gained 28 paise to close at nearly two-month high of 94.94 (provisional) against the U.S. dollar on Tuesday (September 1, 2026) on robust domestic growth, controlled fiscal slippage and portfolio-related inflows.

Forex traders said recent MSCI-linked inflows are offering temporary support to the rupee.

Moreover, the Reserve Bank of India (RBI) might have intervened to support the domestic currency, they said.

At the interbank foreign exchange market, the rupee opened at 95.06 and touched an intraday high of 94.79 and a low of 95.10 during the session.

At the end of Tuesday’s trading session, the rupee was quoted at 94.94 (provisional), higher by 28 paise from its previous close.

On Monday, the rupee settled 21 paise higher at 95.22 against the U.S. dollar.

“The Indian rupee gained on possible intervention by the RBI and upbeat macroeconomic data. However, weak domestic markets and a surge in crude oil prices capped sharp gains,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.58, higher by 0.15%.

Brent crude, the global oil benchmark, was trading higher by 1.97% at $92.27 per barrel in futures trade.

“We expect the rupee to trade with a slight negative bias amid rising crude oil prices on the back of renewed geopolitical tensions between the U.S. and Iran. Hawkish comments from Fed Chair Kevin Warsh may also pressurise the rupee.

“However, any de-escalation of tensions may support the rupee at lower levels. Traders may take cues from ISM manufacturing PMI and JOLTS job openings data from the U.S.,” Mr. Choudhary said, adding that the USDINR spot price is expected to trade in a range of 94.65 to 95.25.

On the domestic equities market front, Sensex dipped 12.99 points to settle at 76,944.28, while Nifty fell 24.60 points to 24,055.80.

Foreign institutional investors offloaded equities worth ₹7,985.88 crore on a net basis on Monday, according to exchange data.

FPIs invested around $3.1 billion in August, their strongest monthly inflow in 23 months and the second consecutive month of net buying.

However, foreign investors remain net sellers of around $24.6 billion so far in 2026.

On the macroeconomic front, India’s economy grew at a faster-than-expected 7.8% in the April-June quarter, showing resilience in the face of concerns that the war in Iran and resulting global economic uncertainty could weigh on growth.

Meanwhile, the central government’s fiscal deficit for 2026-27 stood at 26.8% of the full-year target at the end of July, according to data released by the Controller General of Accounts (CGA) on Monday.

The deficit was at 29.9% of Budget Estimates (BE) of 2025-26 for the first four months of the previous financial year.

The rupee depreciated by 14 paise to close at 94.65 (provisional) against the U.S. dollar on Tuesday (June 30), as a strengthening greenback overseas and risk-averse investor sentiment weighed on the local unit.

Forex traders said the rupee slipped to 94.58 against the U.S. dollar, driven by month-end corporate import demand and lingering risk-off sentiment. However, relatively stable global crude prices and anticipated central bank interventions supported the currency and restricted the slide.

At the interbank foreign exchange market, the rupee opened at 94.60 against the American currency and finally closed for the day at 94.65 (provisional), registering a decline of 14 paise from its previous close.

On Monday, the rupee pared initial gains and settled lower by 6 paise at 94.51 against the dollar.

“The Indian rupee depreciated for the third consecutive session, weighed down by persistent safe-haven flows into the greenback and strong corporate dollar demand. Broader risk-off sentiment across global markets continues to keep the domestic currency under pressure,” Dilip Parmar, Research Analyst, HDFC Securities, said.

Mr. Parmar further added that from a technical standpoint, spot USD/INR faces immediate resistance at 95.10, while a breakdown below 94.40 will act as key support.

Experts said month-end and quarter-end dollar demand is keeping the dollar well bid. Importers, corporates, and banks typically use this period to square positions and meet payment obligations.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.34, up 0.23%.

Brent crude, the global oil benchmark, was trading lower by 0.37% at $72.88 per barrel in futures trade.

On the domestic equity market front, Sensex declined 249.70 points to settle at 76,478.67, while the Nifty fell 80.50 points to 23,865.75.

Foreign institutional investors sold equities worth ₹1,350.1 crore on a net basis on Monday, according to exchange data.

Meanwhile, U.S. Ambassador to India Sergio Gor said on Tuesday (June 30) that the U.S.-India trade deal is in its “final steps”, with only the last one per cent of negotiations left to be concluded.

Addressing the U.S.-India Strategic Partnership Forum Leadership Summit, Mr. Gor said he was determined to agree, as it would be beneficial to both nations, and it would be sealed after nearly 18 months of talks.

The rupee depreciated 47 paise to close at 95.73 (provisional) against the U.S. dollar on Tuesday (May 26, 2026), on renewed geopolitical tensions in West Asia and a rise in crude oil prices.

Forex traders said a strong U.S. dollar and weak domestic markets also pressured the rupee. At the interbank foreign exchange market, the rupee opened at 95.43 against the U.S. dollar, and touched an intra-day high of 95.33 and a low of 95.76 against the American currency.

At the end of Tuesday’s (May 26) close, the rupee was quoted at 95.73 (provisional), down 47 paise from its previous closing. On Monday (May ), the rupee gained 34 paise to close at 95.26 against the U.S. dollar with the RBI selling dollars and keeping the rupee well bid at all upper levels.

“We expect the rupee to trade with a negative bias on uncertainty between the U.S. and Iran and concerns over military action in the West Asia.

“However, softening of crude oil prices from higher levels may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of 95.20 to 95.85,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.

Forex traders said the rupee remains vulnerable to rising crude oil prices and the strength of the American currency in the overseas market.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.05, down 0.19%.

Brent crude, the global oil benchmark, was trading up 3.43% at $99.94 per barrel in futures trade after reports that the U.S. had carried out fresh attacks against Iran, offsetting hopes of a deal to reopen the Strait of Hormuz.

U.S. President Donald Trump on Monday (May 25) said negotiations with Iran to end the war were progressing “nicely”, but officials pointed out that a final decision may take some time due to the complex communication networks Tehran deploys to consult with its supreme leader.

On the domestic equity market front, Sensex dropped 479.26 points to settle at 76,009.70, while the Nifty declined 118 points to 23,913.70.

Foreign institutional investors turned net buyers and purchased equities worth ₹821.75 crore on Monday (May 25), according to exchange data.

The rupee breached the 91-a-dollar mark for the second time in a month before ending 14 paise down at 90.92 (provisional) against the greenback on Monday (January 19, 2026), as renewed concerns over global trade uncertainties accelerated foreign fund withdrawal.

Despite weak American currency and lower crude oil prices, selling pressure in domestic equities pushed the Indian currency downward, forex analysts said.

Investors were also concerned after U.S. President Donald Trump announced tariffs on European countries if they resisted his plan to control Greenland.

At the interbank foreign exchange, the rupee opened at 90.68 and slid past the crucial 91.01 against the greenback during the session. It finally settled 14 paise lower at 90.92 (provisional) against the dollar, just 1 paise above its record low closing level.

On December 16, 2025, the rupee reached its lowest intra-day level of 91.14 and its lowest closing level of 90.93 against the American currency.

On Friday,(January 16, 2026) the rupee crashed 44 paise to settle near its lowest level at 90.78 against the U.S. dollar, after losing 17 paise in the preceding two sessions.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.23% lower at 98.97.

Brent crude, the global oil benchmark, was trading 0.94% lower at $63.53 per barrel in futures trade.

On the domestic equity market front, the Sensex declined 324.17 points or 0.39% to settle at 83,246.18, while the Nifty fell 108.85 points or 0.42% to 25,585.50.

Foreign institutional investors offloaded equities worth ₹4,346.13 crore on Friday (January 16, 2026), according to exchange data.