The rupee depreciated 10 paise to close at 94.95 (provisional) against the U.S. dollar on Monday (June 01, 2026), amid renewed geopolitical tensions between the U.S. and Iran and surge in crude oil prices. Forex traders said the strength of the American currency in the overseas market and Israel-Lebanon tensions also deteriorated global risk sentiments.

At the interbank foreign exchange market, the rupee opened at 94.93 against the U.S. dollar, then touched an intraday high of 94.73 and a low of 95.03 during the day. At the end of Monday’s (June 01, 2026) trading session, the rupee was quoted at 94.95 (provisional), down 10 paise from its previous close.

On Friday (May 31, 2026), the rupee appreciated 73 paise to close at 94.85 against the U.S. dollar on suspected interventions by the RBI. “We expect the rupee to trade with a slight negative bias on renewed geopolitical tensions and an overnight surge in crude oil prices. A strong dollar and rising U.S. treasury yields may also weigh on the rupee,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan. Mr. Choudhary further noted that any continued peace talks may prevent a sharp fall. “USDINR spot price is expected to trade in a range of 94.60 to 95.30,” he added.

Forex traders said attention has now shifted toward the upcoming RBI Monetary Policy Committee meeting scheduled for June 3-5. The six-member Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, will announce its decision on June 5.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.04, up 0.10%. Brent crude, the global oil benchmark, was trading higher by 3.47% at $94.28 per barrel in futures trade.

On the domestic equity market front, Sensex dropped 508.40 points to settle at 74,267.34, while the Nifty was down 165.15 points to 23,382.60. Foreign institutional investors offloaded equities worth ₹21,105.86 crore on a net basis on Friday (May 29, 2026), according to exchange data.

According to the RBI’s latest data released on Friday (May 29, 2026), India’s forex reserves dropped by $7.511 billion to $681.384 billion during the week ended May 22. In the previous week, the kitty had dropped $8.094 billion to $688.894 billion. According to government data released on Monday (June 1, 2026), gross GST collections rose 3.2% to over ₹1.94 lakh crore in May on higher supplies of goods and services, as well as collection from imports.

Meanwhile, U.S. President Donald Trump has said the U.S. and Iran are close to a “very good deal,” but if Washington does not get what it wants, then it will “end it in a different way.” Mr. Trump said the Iranians are “good negotiators,” but argued that the United States now holds “all the cards” because Iran has been “militarily defeated.”

The rupee rose 9 paise to 87.79 against the dollar in early trade on Friday (October 24, 2025), bolstered by a drop in global crude oil prices and optimism around an India-U.S. trade deal.

However, FII outflows prevented sharper gains, forex traders said.

At the interbank foreign exchange, the rupee opened at 87.78 against the U.S. dollar before dropping marginally to 87.79, down 9 paise from its previous close.

The rupee appreciated 5 paise to close at 87.88 against the U.S. dollar on Thursday (October 23).

“The Reserve Bank of India was again present at 87.95 yesterday [Thursday, October 23], ensuring that the rupee does not cross 88.00 level and the rupee closed with optimism of a U.S.-India trade deal at its peak. Global sentiment remains mixed as oil prices move higher,” Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08% higher at 99.01.

Brent crude, the global oil benchmark, was trading lower by 0.55% at $65.63 per barrel in futures trade.

“After gaining more than 5% on Thursday (October 23) due to U.S. sanctions on two Russian oil companies exports (which account for over 5% of the total world oil output), Brent oil prices were stable at $65.63 per barrel and set for its biggest weekly gain since June 2025. Prices are higher by 7% on a weekly basis, reflecting one of the most significant weekly rebounds in about 4 months,” Mr. Bhansali added.

On the domestic equity market front, Sensex declined 153.18 points to 84,403.22 in early trade while the Nifty was down 51.1 points to 25,840.30.

Foreign Institutional Investors sold equities worth ₹1,165.94 crore on Thursday (October 23), according to exchange data.