The rupee traded in a narrow range and rose 7 paise to 95.64 against the American currency in early trade on Monday (August 24, 2026), supported by a softer U.S. dollar, but simmering geopolitical tensions kept it from making strong gains.

Forex traders said the Dollar Index has weakened, but elevated Brent crude and persistent importer demand limited the rupee’s gains.

Moreover, investors are treading a cautious path as Washington is set to unveil a fresh wave of sanctions on Iran, targeting its oil trade, banking network and shipping routes.

At the interbank foreign exchange, the rupee opened at 95.68, then rose to 95.64, higher by 7 paise from its previous close.

On Friday (August 21, 2026), the rupee settled higher by just 3 paise at 95.71 against the U.S. dollar.

“The worry for markets isn’t just Iran; it’s who else gets caught in the crossfire, since several major economies continue to engage with Iranian trade in some form. Until the details are out this evening, oil and currency markets are likely to stay cautious,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.82, higher by 0.03%.

Brent crude, the global oil benchmark, was trading lower by 1.32% at $93.14 per barrel in futures trade.

On the domestic market front, Sensex climbed 202.42 points to 77,744.15 in early trade, while the Nifty was trading up 55.35 points at 24,309.

Foreign institutional investors offloaded equities worth ₹542.71 crore on a net basis on Friday (August 21), according to exchange data.

India’s forex reserves jumped $9.905 billion to $716.907 billion during the week ended August 14, the Reserve Bank of India (RBI) said on Friday (August 21).

The rupee depreciated 19 paise to close at 95.61 (provisional) against the U.S. dollar on Monday (August 17, 2026), amid weak domestic equity markets and a surge in crude oil prices.

Forex traders said the USD/INR pair is likely to trade with a slight negative bias, pressured by the delay in the deal between the U.S. and Iran, rising crude oil prices and broader dollar support.

Moreover, investors’ sentiment turned cautious after the Reserve Bank of India on August 14 said that its swap facility for FCNR (B) deposits will be available only for deposits mobilised till August 31.

At the interbank foreign exchange market, the rupee opened at 95.50 against the greenback and traded in a range of 95.49-95.62 during the session. It eventually settled at 95.61 (provisional), lower by 19 paise from its previous close.

On Friday (August 14, 2026), the rupee appreciated 3 paise to close at 95.42 against the U.S. dollar. Earlier, the cut-off date for Foreign Currency Non-Resident (Bank) or FCNR (B) deposits was September 30.

Under the FCNR (B) scheme, banks offer attractive interest rates to mobilise foreign currency deposits.

The Reserve Bank on Friday (August 14) said its concessional swap facility, introduced to encourage foreign currency inflows, has attracted $56.84 billion till August 13.

The Indian rupee declined on weak domestic markets and a surge in crude oil prices. However, a soft dollar cushioned the downside, Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan said, adding, “We expect the rupee to trade with a slight negative bias on the delay in the deal between the U.S. and Iran and rising crude oil prices.” Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.40, down 0.26%.

Brent crude, the global oil benchmark, was trading higher by 0.99% at $89.40 per barrel in futures trade.

On the domestic equity market front, Sensex dropped 281.09 points to settle at 77,728.16, while the Nifty closed lower by 78.35 points at 24,287.65.

Foreign institutional investors purchased equities worth ₹508.12 crore on a net basis on Friday (August 14), according to exchange data.

Meanwhile, India’s forex reserves jumped by $14.136 billion to $707.002 billion during the week ended August 7, the Reserve Bank said on Friday (August 14). The overall kitty had jumped by $10.512 billion to $692.866 billion in the previous reporting week ended July 31.

The rupee settled just 3 paise higher at 95.33 (provisional) against the U.S. dollar on Wednesday (August 12), as hopes of a quick U.S.-Iran agreement and reopening of the Strait of Hormuz faded.

Forex traders said Brent crude is moving towards $90 per barrel amid risk aversion in global markets.

At the interbank foreign exchange market, the rupee opened at 95.40 against the greenback and traded in a range of 95.24-95.43 during the session. It eventually settled at 95.33 (provisional), higher by 3 paise from its previous close.

On Tuesday (August 11), the rupee declined 6 paise to settle at 95.36 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.85, up 0.03%, largely on the back of oil-related uncertainty.

Brent crude, the global oil benchmark, was trading higher by 0.07% at $88.97 per barrel in futures trade. According to traders, the U.S. CPI print is a key factor for the USD/INR pair.

A hotter-than-expected CPI would strengthen expectations of a September Fed rate hike, pushing yields and the dollar higher.

“This could put further pressure on the rupee, while a softer reading could ease rate-hike expectations and support the rupee,” CR Forex Advisors MD- Amit Pabari said.

On the domestic equity market front, Sensex declined 187.90 points to settle at 77,966.35, while Nifty dipped 35.75 points to 24,435.95.

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

Meanwhile, Fitch Ratings on Tuesday (August 11) retained India’s sovereign credit rating at ‘BBB-‘ for the 20th year in a row, but flagged risks of pressure on fiscal spending amid youth protest over jobs.

Fitch said despite headwinds from the energy shock due to the West Asia conflict, India’s economy remains strong with a robust growth outlook and solid external finance fundamentals.