The rupee depreciated 56 paise to settle at 95.74 (provisional) against the American currency on Monday (June 8, 2026), pressured by elevated crude oil prices and the strength of the U.S. dollar in the overseas market due to higher risk aversion amid escalating geopolitical tensions.

Forex traders said the USD/INR pair erased the previous trading session’s gains on risk aversion in global markets. Further, a sharp jump in crude oil prices and a rise in the U.S. dollar index dented investor sentiment.

At the interbank foreign exchange market, the rupee opened at 95.35, then touched an intraday high of 95.15 and finally ended the session at 95.74 (provisional), registering a loss of 56 paise from its previous close.

On Friday (June 5), the rupee appreciated 56 paise to close at 95.18 against the U.S. dollar, after the Reserve Bank announced measures to support foreign capital inflows and strengthen forex liquidity.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.16, up 0.09%.

Brent crude, the global oil benchmark, was trading higher by 3.94% at $96.76 per barrel in futures trade after Iran launched multiple rounds of missiles toward Israel.

“We expect the rupee to trade with a negative bias on escalating geopolitical tensions between the U.S., Israel, and Iran and rising crude oil prices. A strong dollar and rise in U.S. treasury yields may also pressurise the rupee,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.

Mr. Choudhary further noted that any intervention by the Reserve Bank may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of 95.40 to 96.10.

On the domestic equity market front, Sensex tanked 719.08 points to settle at 73,524.26, while the Nifty dived 243.70 points to 23,123.

Foreign institutional investors offloaded equities worth ₹8,776.25 crore on a net basis on Friday (June 5), according to exchange data.

India’s forex reserve jumped by $938 million to $682.321 billion during the week ended May 28, the Reserve Bank said on Friday (June 5). In the previous reporting week, the kitty dropped $7.511 billion to $681.384 billion.

Meanwhile, U.S. President Donald Trump has asked Israeli Prime Minister Benjamin Netanyahu not to retaliate to Iran’s latest barrage of missiles, saying it would jeopardise the ongoing negotiations for a peace deal to end the three-month-long conflict.

U.S. media outlet Axios reported that after Iran launched missiles at Israel on Sunday (June 7), Mr. Trump spoke to Mr. Netanyahu in a bid to prevent fresh tensions between the two nations from derailing the peace deal.

The rupee settled on a flat note, higher by 2 paise at 95.68 (provisional) against the U.S. dollar on Wednesday (May 27, 2026), as renewed tensions between the U.S. and Iran and delays in negotiations kept investors cautious.

Forex traders said a strong American currency and weak domestic markets also pressured the rupee. Attention has shifted toward the upcoming Reserve Bank of India (RBI) Monetary Policy Committee meeting scheduled between June 3 and 5, they said.

At the interbank foreign exchange market, the rupee opened at 95.60 against the U.S. dollar, and touched an intra-day low of 95.79 against the American currency.

At the end of Wednesday’s (May 27, 2026) close, the rupee was quoted at 95.68 (provisional), down 2 paise from its previous closing.

On Tuesday (May 26, 2026), the rupee depreciated 44 paise to close at 95.70 against the U.S. dollar.

“We expect the rupee to trade with a negative bias on renewed tensions between the U.S. and Iran and concerns over military action in the Middle East [West Asia].”

“However, softening of crude oil prices may support the rupee at lower levels. USDINR spot price is expected to trade in a range of 95.50 to 96.10,” said Anuj Choudhary, research analyst at Mirae Asset ShareKhan.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.07, down 0.10%.

“Uncertainty around the Strait of Hormuz is keeping U.S. Dollar Index (DXY) well supported via safe haven demand,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors Limited Liability Partnership (LLP).

Brent crude, the global oil benchmark, was trading down 3.02% at $96.57 per barrel in futures trade.

On the domestic equity market front, Sensex declined 141.90 points to settle at 75,867.80, while the Nifty dipped 6.55 points to 23,907.15.

Foreign institutional investors offloaded equities worth ₹2,407.87 crore on Tuesday (May 26, 2026), according to exchange data.

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.