The rupee appreciated 61 paise to close at 94.57 (provisional) against the U.S. dollar on Wednesday (May 6, 2027), as Brent crude prices retreated from elevated levels towards $100 per barrel after U.S. President Donald Trump hinted at a possible deal with Iran.

Forex traders said that with the Indian rupee facing severe pressure, the Reserve Bank of India (RBI) is also actively pursuing a “non-direct” strategy to support the currency.

Moreover, market sentiment was boosted after Mr. Trump paused “Project Freedom,” a U.S. operation to escort ships through the Strait of Hormuz.

At the interbank foreign exchange market, the rupee opened at 95 against the U.S. dollar, then lost ground and touched an intraday low of 95.18. The rupee finally settled at 94.57 (provisional), registering a rise of 61 paise over its previous close.

On Tuesday (May 5), the rupee settled at 95.18 against the U.S. dollar, after witnessing an all-time intraday low of 95.44, on possible RBI intervention after investors retreated from riskier assets amid renewed clashes in the Gulf and targeting of UAE infrastructure, which reignited supply chain fears.

According to CR Forex Advisors MD Amit Pabari, the Reserve Bank of India is exploring ways to support the currency without directly using its forex reserves.

Mr. Pabari further noted that one of the ideas being discussed is to encourage state-run banks to raise funds through foreign currency bonds, which could help bring fresh dollar inflows into the system.

President Trump has suspended “Project Freedom” to escort ships through the Strait of Hormuz, claiming progress in negotiations with Iran toward an agreement to end the war.

In a post on Truth Social on Tuesday (May 5), Mr. Trump said, “Great progress has been made toward a complete and final agreement with representatives of Iran.”

Project Freedom was launched on Monday (May 4) to escort ships, stranded due to the closure of the Strait of Hormuz, out to safety. Mr. Trump had announced the operation on Sunday (May 3), and the U.S. Central Command began implementing it the next day.

“The global mood showed a slight pause, but not a complete sense of relief. U.S. President Donald Trump announced that “Project Freedom” will be temporarily paused to allow room for a possible agreement, which has helped cool some of the extreme uncertainty in the markets,” Mr. Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 97.79, down 0.66%.

Brent crude, the global oil benchmark, was trading lower by 8.25% at $100.81 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 940.73 points to settle at 77,958.52, while the Nifty surged 298.15 points to 24,330.95.

Foreign Institutional Investors sold equities worth ₹3,621.58 crore on Tuesday (May 5), according to exchange data.

Meanwhile, India’s services sector growth climbed to a five-month high of 58.8 in April with new orders and output expanding at quicker rates, as firms indicated a shift from international to domestic suppliers amid the West Asia crisis, a monthly survey said on Wednesday (May 6).

The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 57.5 in March to 58.8 in April, showing the strongest rate of expansion since last November.

The rupee slid ​to a record low on ‌Tuesday (May 5, 2026) after U.S.-Iranian strikes ​in the Gulf rattled ⁠markets, dimming hopes for a resolution and deepening concerns over ‌risks confronting the oil-importing economy.

The currency ‌weakened to 95.39 ‌per ⁠dollar, down 0.3% on ⁠the day, eclipsing its previous all-time low of 95.33 hit on ​Thursday (April 30, 2026) last ‌week.

Oil-sensitive Asian peers such as the Indonesian rupiah and Philippine peso also ‌weakened on Tuesday (May 5, 2026) as ​the Gulf hostilities tested a fragile truce ⁠and kept investors on edge.

Analysts reckon that an ‌elongated conflict in the West Asia, which keeps energy prices elevated, would widen India’s current account deficit, slow growth ‌and stoke inflation.

The economic worries ​have reflected in foreign portfolio outflows from ⁠Indian assets. Overseas investors have ⁠net sold over $20 billion worth of Indian ‌stocks between March and May so far.

The rupee rose 3 paise to 89.95 against U.S. dollar in early trade on Tuesday (December 20, 2025), buoyed by a weaker greenback and strong IIP numbers.

However, FII outflows, marginally higher crude oil prices, and a weaker opening in the domestic equity markets capped sharp gains in the local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 89.98 against the US dollar before rising to 89.95, up 3 paise from its previous close.

The rupee depreciated 8 paise to close at 89.98 against the U.S. dollar on Monday.

“The RBI (on Monday) protected the top end of the curve while FPIs who sold equities also were dollar buyers, keeping bids on for the full day and taking it almost to 90 levels,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

Mr. Bhansali further cited strong Index of Industrial Production (IIP) data, which was released on Monday.

“The IIP came at a 25-month high of 6.7% for November against expectation of 2.5% and last month growth of 0.5%. The growth during the year has been 3.30% against 2.70% in the last month,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally down by 0.03% at 98.01.

Brent crude, the global oil benchmark, was trading 0.03% higher at $61.96 per barrel in futures trade, amid thin year-end trading and ongoing concerns about global demand.

On the domestic equity market front, the 30-share sensitive index Sensex declined 209.32 points to 84,486.22 in early trade while the Nifty was down 63.25 points to 25,878.85.

Foreign institutional investors offloaded equities worth ₹2,759.89 crore on Monday, according to exchange data.

The rupee pared initial gains and settled for the day lower by 16 paise at 89.79 (provisional) against the U.S. dollar on Wednesday (December 24, 2025), fuelled by persistent capital withdrawals from foreign investors, alongside heightened greenback demand from bullion importers.

Forex traders said that despite the central bank’s announcement of USD/INR swaps and Open Market Operations (OMO), the measures failed to boost market sentiments, amid strong dollar demand and rising crude oil prices.

At the interbank foreign exchange, the rupee opened at 89.56 against the U.S. dollar, then touched an intra-day high of 89.51, registering a 12-paise gain from its previous close.

At the end of the trading session on Wednesday (December 24), the rupee pared its initial gains and was quoted at 89.79 (provisional), down 16 paise from its previous close.

On Tuesday (December 23), the rupee settled at 89.63 against the U.S. dollar.

The decline in the USD/INR pair was driven by a shift toward risk aversion, fuelled by persistent capital withdrawals from foreign investors leading up to the holiday break, alongside heightened greenback demand from bullion importers, said Dilip Parmar, Senior Research Analyst, HDFC Securities.

“Despite the central bank’s announcement of USD/INR swaps and Open Market Operations (OMO), the measures failed to ignite market enthusiasm as they did little to bridge the widening gap between dollar supply and demand ahead of year-end,” Mr. Parmar noted.

The outlook for spot USD/INR maintains an upward trajectory provided it holds above the 89.00 mark; however, the 90.30-level continues to act as a formidable resistance for further gains, he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13% lower at 97.81.

Brent crude, the global oil benchmark, was trading 0.22% higher at $62.52 per barrel in futures trade.

On the domestic equity market front, the Sensex declined 116.14 points to settle at 85,408.70, while the Nifty dropped 35.05 points to 26,142.10.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,794.80 crore on Tuesday (December 23), according to exchange data.

The Reserve Bank of India (RBI) on Tuesday (December 23) said it will purchase government securities worth ₹2 lakh crore and conduct a $10 billion buy/sell dollar-rupee swap auction to inject liquidity in the banking system.

The latest announcement comes days after the RBI conducted ₹1 lakh crore OMO purchase auctions of Government of India securities and USD/INR Buy/Sell Swap auction of $5 billion for a tenor of three years.

The rupee witnessed high volatility in early trade on Wednesday (December 17, 2025), as support from easing crude oil prices was offset by uncertainty over the India-U.S. trade deal and persistent foreign fund outflows.

Forex traders said the key driver of rupee weakness in December was continued Foreign Portfolio Investors (FPI) selling across both equity and debt markets, with foreign investors repeatedly selling several billion dollars worth of Indian assets on a daily basis in the last few months, the selling intensifying in the last two months.

However, with Brent crude oil prices hovering near recent multi-year lows of $59 per barrel, the local unit was supported at lower levels.

At the interbank foreign exchange market, the rupee opened at 91.05 against the U.S. dollar, down 12 paise from its previous close.

The domestic unit, however, witnessed a sharp recovery and appreciated 97 paise to touch an early high of 89.96 against the American currency and was trading at 90.18 against the U.S. dollar at 9:46 a.m.

On Tuesday (December 16), the rupee tanked below 91 per dollar, hitting a low of 91.14. It finally settled at 90.93 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.17% higher at 98.31.

Brent crude, the global oil benchmark, was trading at $59.54 per barrel in futures trade, as record non-OPEC (non-Organization of the Petroleum Exporting Countries) supply, weak China data and optimism over a Ukraine ceasefire were the main reasons for the current fall, traders said.

Meanwhile, Minister of State for Finance Pankaj Chaudhary on Tuesday (December 16) informed the Parliament that, “During the current financial year, the depreciation of the INR has been influenced by the increase in trade deficit and likely prospects arising from the ongoing developments in India’s trade agreement with the U.S., amid relatively weak support from the capital account”.

“The depreciation of currency is likely to enhance export competitiveness, which in turn impacts the economy positively. On the other hand, depreciation may raise the prices of imported goods. However, the overall impact of exchange rate depreciation on domestic prices depends on the extent of the pass-through of international commodity prices to the domestic market,” he said.

On the domestic equity market front, the 30-share benchmark index Sensex was trading 146.09 points higher at 84,825.95, while the Nifty was up 62.05 points at 25,922.15.

Foreign Institutional Investors (FIIs) sold equities worth ₹2,381.92 crore on Tuesday (December 16), according to exchange data.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, the rupee may see a slow and steady move towards 92 in the coming days, with no signs of any trade deal happening between India and the U.S., which has also been a cause for the equities to fall.

The rupee plunged 43 paise to close at 88.26 (provisional) against the U.S. dollar on Monday (October 27, 2025), as broad strength in crude oil prices and month-end dollar demand from importers weighed on investor sentiment.

Forex traders said the rally in crude oil prices was driven by a potential U.S.-China trade deal, which supports expectations for a stronger global oil demand.

At the interbank foreign exchange, the rupee opened at 87.87 against the greenback and fell to an intra-day low of 88.31 and a high of 87.86. It finally closed the day at 88.26 (provisional) against the greenback, down 43 paise from its previous close.

On Friday, the rupee appreciated 5 paise to close at 87.83 against the U.S. dollar.

Traders continue to watch developments around trade negotiations and geopolitical events for further cues.

“We expect the rupee to trade with a positive bias on improved domestic market sentiments amid optimism over the trade deal and strong domestic equities. Easing geopolitical tensions may also support the rupee.

“However, month-end dollar demand from importers and a surge in global crude oil prices may cap sharp upside. USDINR spot price is expected to trade in a range of 87.80 to 88.50,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08% lower at 98.86.

Brent crude, the global oil benchmark, was trading 0.85% lower at $65.39 per barrel in futures trading.

On the domestic equity market front, the Sensex jumped 566.96 points to settle at 84,778.84, while the Nifty climbed 170.90 points to 25,966.05.

Foreign Institutional Investors purchased equities worth ₹621.51 crore on Friday, according to exchange data.

Meanwhile, India’s forex reserves increased by $4.496 billion to $702.28 billion during the week ended October 17, as the value of gold reserves rose further, the RBI said on Friday.

In the previous week, the overall reserves had jumped by $2.176 billion to $697.784 billion.

The rupee witnessed range-bound trading in morning deals on Friday and depreciated 7 paise to 88.42 against the U.S. dollar, as tariff-led pressure on India’s exports and sustained foreign fund outflows dented investors sentiments.

Forex traders said the domestic unit is hovering around its all-time low level amid a recovery in the U.S. dollar index and persistent foreign fund outflows.

Dollar demand from importers and ongoing tariff issues between India and U.S. also pressurised the rupee, they said.

At the interbank foreign exchange market, the rupee opened at 88.39, then lost ground and touched an early low of 88.42 against the U.S. dollar, registering a decline of 7 paise over its previous close.

On Thursday, the rupee slumped 24 paise and closed for the day at an all-time low of 88.35 against the U.S. dollar and had slumped to an intraday low of 88.47 against the greenback.

“With fresh record lows now marked, the near-term range for USD/INR is likely to hold between 87.90 and 88.60. The weak-dollar theme, coupled with hopes that U.S.-India trade talks may make progress, could provide some breathing room for the rupee in the coming days. But for now, tariffs remain the overhang that markets cannot ignore,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.10% to 97.62.

Brent crude, the global oil benchmark, was trading 0.83% lower at $65.82 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 287.93 points to 81,836.66 in early trade, while the Nifty rallied 84.25 points to 25,089.75.

Foreign Institutional Investors offloaded equities worth ₹3,472.37 crore on Thursday, according to exchange data.

Meanwhile, Commerce and Industry Minister Piysuh Goyal on Thursday said that negotiations between India and the U.S. on the proposed trade agreement, which began in March, are progressing in a positive atmosphere and both the countries are satisfied with the progress.

These remarks follow the announcement by Mr. Trump that there will be “no difficulty” for the two countries to come to a successful conclusion in trade talks and he looks forward to speaking with his “very good friend” Prime Minister Narendra Modi in the coming weeks.