The rupee depreciated 28 paise to 95.64 against the U.S. dollar in early trade on Wednesday (June 3, 2026), after the U.S. Trade Representative proposed 12.5% additional duties on India and 53 other countries over forced labour import violations.

Forex traders said the U.S. Trade Representative’s action, amid fresh hostilities and stalled talks between the U.S. and Iran, weighed on investor sentiment.

At the interbank foreign exchange market, the rupee opened at 95.43 against the U.S. dollar, then touched 95.64 in early trade, down 28 paise from its previous close.

On Tuesday (June 2, 2026), the rupee depreciated 17 paise to close at 95.36 against the U.S. dollar.

The U.S. Trade Representative has proposed imposing 12.5% additional duties on 54 countries, including India, for failing to prohibit the import of goods produced with forced labour.

The action follows investigations launched against 60 countries over what the USTR described as their failure to impose and effectively enforce bans on imports made with forced labour.

India has denied the allegations under the forced labour clause and asked the U.S. to end the investigations, saying such matters should be addressed within the framework of ongoing bilateral trade negotiations.

The USTR statement said 54 countries, including India, China, Japan, Brazil, Australia, the U.K., and Saudi Arabia, have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.24, up 0.03%, as safe-haven buying syndrome returned but kept the index well within a small range of 99 to 99.25.

Brent crude, the global oil benchmark, was trading higher by 0.82% at $96.79 per barrel in futures trade.

On the domestic equity market front, Sensex tanked 699.74 points to 73,959.48 in early trade, while the Nifty dropped 177.40 points to 23,302.50.

Investors are also monitoring developments in West Asia and awaiting key economic data from the U.S., which could set the path for fresh clues from the U.S. Federal Reserve on the interest rate path, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

Mr. Bhansali further added that market participants are now turning their attention to the RBI MPC rate decision on June 5, as inflation, growth and the rupee are under focus.

Foreign institutional investors offloaded equities worth ₹8,362.92 crore on a net basis on Tuesday (June 2, 2026), according to exchange data.

The rupee depreciated 10 paise to close at 95.29 (provisional) against the U.S. dollar on Tuesday (June 2, 2026), as global crude oil prices jumped and the American currency remained firm amid massive safe-haven inflows.

Forex traders said significant foreign fund outflows also weighed on the investor sentiments.

At the interbank foreign exchange market, the rupee opened at 95.16 against the U.S. dollar, then touched an intraday high of 95.03 and a low of 95.31.

At the end of Tuesday’s (June 2, 2026) trading session, the rupee was quoted at 95.29 (provisional), down 10 paise from its previous close.

On Monday (June 1, 2026), the rupee depreciated 34 paise to close at 95.19 against the U.S. dollar.

“We expect the rupee to trade with a negative bias on renewed geopolitical tensions and a surge in crude oil prices. Strength in the dollar may also put pressure on the rupee. However, continued peace talks may prevent a sharp fall,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.

Investors may watch out for the Reserve Bank of India (RBI) monetary policy this week, Mr. Choudhary said, adding that the USD-INR spot price is expected to trade in a range of 94.90 to 95.50.

The RBI Monetary Policy Committee meeting is scheduled for June 3-5. The six-member 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 99.12, down 0.08%.

Brent crude, the global oil benchmark, was trading lower by 1.66% at $93.40 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 382.50 points to settle at 74,649.84, while the Nifty gained 100.95 points to 23,483.55.

Foreign institutional investors offloaded equities worth ₹3,911.68 crore on a net basis on Monday (June 1, 2026), according to exchange data.

On the domestic macroeconomic front, India’s industrial production expanded by 4.9 per cent in April, while manufacturing output grew 6.2%.

Moreover, according to the latest data released by the Controller General of Accounts on Monday (June 1, 2026), the government successfully met its fiscal deficit target of 4.4% of GDP for FY26, exactly matching its budget estimate.

Meanwhile, U.S. President Donald Trump on Monday (June 2, 2026) said talks were continuing with Iran at a rapid pace.

Mr. Trump also said that he has persuaded Prime Minister Benjamin Netanyahu to call off the strike on Beirut, following which the Israeli leader “turned his troops around”.

The rupee appreciated 16 paise to 95.03 against U.S. dollar in early trade on Tuesday (June 2, 2026), as the market weighed India’s strong domestic fundamentals against ongoing geopolitical uncertainty.

Forex traders said the USD/INR pair opened on a positive note this morning on a slight risk off sentiment. However, the uncertainty surrounding West Asia continues to cast a shadow over financial markets and energy prices.

At the interbank foreign exchange market, the rupee opened at 95.16 against the U.S. dollar, then touched 95.03 in early trade, up 16 paise from its previous close.

On Monday (June 1, 2026), the rupee depreciated 34 paise to close at 95.19 against the U.S. dollar.

Market participants are now turning their attention to two key events closer to home— the RBI policy decision scheduled for June 5, the second event is the ongoing trade dialogue between India and the United States, CR Forex Advisors MD Amit Pabari said.

A U.S. delegation led by Assistant U.S. Trade Representative Brendan Lynch will begin discussions with Indian officials in New Delhi this week as both countries work toward finalising a trade agreement. “Markets will closely monitor any progress on tariff-related issues and broader trade cooperation,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.19, down 0.01%.

Brent crude, the global oil benchmark, was trading down 0.59% $94.42 per barrel in futures trade.

On the domestic equity market front, Sensex declined 296.19 points to 73,971.30 in early trade, while the Nifty dropped 103.30 points to 23,272.25.

Foreign institutional investors offloaded equities worth ₹3,911.68 crore on a net basis on Monday, according to exchange data.

On the domestic macroeconomic front, India’s industrial production expanded by 4.9% in April, while manufacturing output grew 6.2%.

Moreover, according to the latest data released by the Controller General of Accounts on Monday, the government successfully met its fiscal deficit target of 4.4% of GDP for FY26, exactly matching its budget estimate.

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 depreciated 9 paise to 94.94 against the U.S. dollar in early trade on Monday (June 1, 2026) weighed down by elevated crude oil prices as the Israel-Lebanon conflict escalated.

Forex traders said Dollar Index was nearer to 99 levels while oil prices rose to $93 per barrel after Israel-Lebanon conflict escalated following sharp weekly drops as Washington and Tehran discussed potential ceasefire that could eventually ease out the disruptions around Strait of Hormuz.

At the interbank foreign exchange market the rupee opened at 94.93 then lost some ground and touched an early low of 94.94, registering a fall of 9 paise from its previous close.

In initial trade, the rupee also touched 94.75 against the American currency.

On Friday, the rupee appreciated 73 paise to close at 94.85 against the U.S. dollar on suspected interventions by the RBI.

“The rupee closed at a high as RBI was present in the market selling dollars ensuring that it did not cross 96.00 levels again. Though there were outflows related to MSCI the rupee was able to maintain its Mojo solely due to the presence of RBI in the markets,” said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

According to RBI’s latest data released on Friday, India’s forex reserves dropped by $7.511 billion to $681.384 billion during the week ended May 22, the RBI said on Friday (May 29).

In the previous reporting week, the kitty had dropped $8.094 billion to $688.894 billion.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.04 up 0.11%.

“The dollar index has been well bid at all lower levels due to safe haven demand with conflict continuing in the Middle East,” Mr. Bhansali said.

Brent crude, the global oil benchmark, was trading higher by 1.98 per cent at $92.92 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 206.16 points to 74,981.90 in early trade, while the Nifty was up 42.65 points to 23,604.80.

Foreign institutional investors offloaded equities worth $21,105.86 crore on a net basis on Friday, according to exchange data.

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 appreciated 53 paise to close at 95.05 (provisional) against the U.S. dollar in early trade on Friday (May 29, 2026), as renewed optimism over the peace deal between the U.S. and Iran boosted market sentiments.

Forex traders said the USD/INR pair appreciated on an overnight decline crude oil prices and a fall in the U.S. dollar, after the U.S. and Iran reached an understanding to extend the ceasefire for another 60 days.

On Thursday (May 28, 2026), the U.S. and Iranian negotiators reached a tentative agreement to extend the ceasefire by 60 days and start a new round of talks on Iran’s nuclear programme.

At the interbank foreign exchange market, the rupee opened at 95.77 against the U.S. dollar, then touched an intraday high of 94.97 and a low of 95.78 during the day.

At the end of Friday (May 29, 2026)’s trading session, the rupee was quoted at 95.05 (provisional), up 53 paise from its previous close.

On Wednesday (May 27, 2026), the rupee settled higher by 12 paise at 95.58 against the U.S. dollar. Domestic equity and forex markets were closed on Thursday (May 28, 2026) on account of Eid-ul-Azha.

“We expect the rupee to trade with a slight positive bias on renewed optimism over the peace deal between the U.S. and Iran, pending approval from Donald Trump and the Iran supreme leader,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.

“Softening crude oil prices and easing of the dollar may also support the rupee. However, any fresh escalations between the U.S. and Iran may pressurise the rupee at higher levels. USD-INR spot price is expected to trade in a range of 94.70. to 95.60,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.13, up 0.11%. Brent crude, the global oil benchmark, was trading down 1.81% at $92.01 per barrel in futures trade.

Forex traders said attention has now shifted toward the upcoming RBI Monetary Policy Committee (MPC) meeting scheduled for June 3-5.

According to experts, the RBI might opt for a rate hike or for a status quo decision. The larger question, however, is whether RBI may choose to prioritise currency stability alongside inflation management.

On the domestic equity market front, Sensex tanked 1,092.06 points to settle at 74,775.74, while the Nifty slumped 359.40 points to 23,547.75.

Foreign institutional investors offloaded equities worth ₹1,042.70 crore on a net basis on Wednesday (May 27, 2026), according to exchange data.

The rupee rose 5 paise to 95.53 against the U.S. dollar in early trade on Friday (May 29, 2026), after the U.S. and Iran reached an understanding to extend the ceasefire for another 60 days.

Forex traders said the agreement is expected to keep trade flowing through the strategic Strait of Hormuz while both countries continue negotiations around Iran’s nuclear program.

At the interbank foreign exchange market, the rupee opened at 95.77 against the U.S. dollar, then gained ground and touched 95.53 in early trade, up 5 paise from its previous close. In initial trade the rupee also touched 95.78 against the American currency.

On Wednesday (May 27), the rupee settled higher by 12 paise at 95.58 against the U.S. dollar.

Domestic equity and forex markets were closed on Thursday on account of Id-ul-Azha.

U.S. and Iranian negotiators reached a tentative agreement on Thursday (May 28) to extend the ceasefire in the three-month-old war by 60 days.

“For markets, this mattered because it reduced immediate fears of fresh disruption in oil supplies. As a result, crude oil prices stayed relatively stable, something that always offers relief to oil-importing countries like India,” 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 99.09, up 0.07%.

Brent crude, the global oil benchmark, was trading down 1.12% at $92.66 per barrel in futures trade.

According to traders a softer dollar and stable oil prices could provide some near-term support to the rupee. However, the rupee’s biggest challenge right now remains foreign investment flows.

Foreign institutional investors (FIIs) have sold nearly $24 billion from Indian equity markets since the beginning of 2026. Debt market flows, in comparison, have remained relatively stable with inflows of around $1 billion.

Foreign institutional investors offloaded equities worth ₹1,042.70 crore on a net basis on Wednesday (May 27), according to exchange data.

“The RBI has already been using several tools to stabilise the rupee, including liquidity operations, forex management measures and steps to curb speculative positions. But if pressure on the currency continues, interest rates could eventually become the next line of defence,” Mr. Pabari said, adding that “the upcoming RBI policy meeting between June 3 and June 5 has become extremely important.”

“As long as global risk sentiment continues improving and crude oil prices remain under control, the rupee could gradually appreciate toward the 94.50–94.80 region in the near term.

“Any cautious signal from the RBI could further strengthen that recovery by improving investor confidence and attracting flows back into the system,” he said.

The rupee rose for the second consecutive session on Friday (May 22, 2026) to close at 95.73 (provisional) against the U.S. dollar on softening of crude oil prices and supposed intervention by the Reserve Bank.

Forex traders said markets found some comfort after comments from U.S. Secretary of State Marco Rubio hinted that diplomatic talks linked to the Iran situation were moving in a constructive direction.

Moreover, positive domestic equities and a decline in U.S. treasury yields also supported the rupee.

At the interbank foreign exchange market, the rupee opened at 96.30 against the U.S. dollar, then touched an intraday high of 95.30 and a low of 95.68 against the U.S. dollar in intraday trade.

At the end of the trading session on Friday (May 22, 2026), the rupee was quoted at 95.73 (provisional), higher by 63 paise from its previous close.

On Thursday (May 21, 2026), the rupee rebounded 50 paise from its all-time closing low to settle at 96.36 against the U.S. dollar.

“We expect the rupee to trade with a negative bias on uncertainty between U.S. and Iran, which may pressurise the rupee. However, optimism over peace deal and softening of crude oil prices may support the rupee at lower levels.

“U.S. Treasury yields are also easing, which may also support the domestic currency. USD-INR spot price is expected to trade in a range of 95.50 to 96.30,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.

Sahil Kapoor, Head of Products and Market Strategist, SVP, DSP Mutual Fund, in a research note, said it is the time to buy rupee assets and not bet against them.

“Currencies, interest rates, and flows are inherently cyclical. Betting against the rupee at these depressed REER levels and tight inflation differentials is a low-probability trade. Conversely, the data suggests it is time to allocate toward rupee-denominated assets across both equities and bonds,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.29, down 0.04%.

Brent crude, the global oil benchmark, was trading up 2.18 per cent at $104.82 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 231.99 points to settle at 75,415.35, while the Nifty advanced 64.60 points to 23,719.30

Foreign Institutional Investors offloaded equities worth ₹1,891.21 crore on a net basis on Thursday (May 21, 2026), according to exchange data.

Meanwhile, Commerce and Industry Minister Piyush Goyal said the government is considering several steps to contain the widening Current Account Deficit (CAD) amid a weakening rupee and widening trade deficit.

The rupee recovered 41 paise from its all-time closing low to 96.45 against U.S. dollar in early trade on Thursday (May 21, 2026), after U.S. President Donald Trump indicated that negotiations with Iran were entering the final stages.

Investors are still gauging the geopolitical risk and oil price sensitivity in the background with any flare-up in West Asia tensions or spikes in crude, forex traders said.

At the interbank foreign exchange market, the rupee opened at 96.25 against the U.S. dollar, then touched 96.45 in early trade, up 41 paise from its all-time lifetime low of 96.86 against the U.S. dollar on Wednesday (May 20, 2026).

On Wednesday (May 20, 2026), the rupee made a new low of 96.95 and later closed at 96.86 which was also a new closing low as demand for dollars continued with dollar index higher and crude oil prices remaining on the higher side near to $110 during the day.

“From a technical perspective, the 97.00 zone is expected to act as an immediate resistance area for USD-INR, while support may emerge around the 95.50–95.80 zone,” CR Forex Advisors MD Amit Pabari said.

Pabari further added that as long as geopolitical tensions remain elevated, the broader pressure on the rupee is likely to continue. RBI measures and liquidity support may help provide temporary relief and contain volatility in the near term, he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.18, up 0.09%.

Brent crude, the global oil benchmark, was trading up 0.71% $105.77 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 327.74 points to 75,646.13 in early trade, while the Nifty was up 111.75 points to 23,772.05.

Foreign Institutional Investors offloaded equities worth ₹1,597.35 crore on a net basis on Wednesday (May 20, 2026), according to exchange data.

As per U.S. media report, U.S. President Donald Trump and Israel’s Prime Minister Benjamin Netanyahu had a tense phone call over the future course of the war on Iran as Washington appeared to be in favour of a deal instead of the resumption of strikes.

After the phone call with Trump, Mr. Netanyahu’s “hair was on fire”, U.S. media outlet Axios reported on Wednesday (May 20, 2026), adding that the Israeli Prime Minister was keen on the resumption of strikes to further degrade Iran’s military capabilities and weaken the regime by destroying its critical infrastructure.

Mr. Trump had said he had put-off strikes on Iran, planned for Tuesday (May 19, 2026), following a request from Arab nations including Qatar and the UAE.

Declining for the ninth consecutive session, the rupee depreciated 13 paise to close at a fresh lifetime low of 96.83 (provisional) against the U.S. dollar on Wednesday (May 20, 2026) as elevated global crude prices amid the West Asia crisis stoked inflation worries.

At the interbank foreign exchange market, the rupee opened at 96.89 against the U.S. dollar, then lost further ground to touch a record low of 96.95 and a high of 96.65, before settling at 96.83 (provisional), registering a fall of 13 paise over its previous close.

In the previous session, the rupee tumbled 50 paise to settle at 96.70 against the dollar.

“Indian rupee hit fresh lows on a strong dollar and a surge in U.S. treasury yields. U.S. 30-year treasury yields rose to a two-decade high, while the 10-year yields rose to a 16-month high.

“This led to inflation worries and sell-off in global markets, making the markets risk-averse,” said Anuj Choudhary, Research Analyst, Commodities Research at Mirae Asset Sharekhan.

“We expect the rupee to trade with a negative bias on risk aversion in the global markets amid inflation worries. A strong dollar and rising U.S. Treasury yields raised inflation concerns and trimmed rate cut expectations. USD/INR spot price is expected to trade in a range of ₹96.5 to ₹97.10,” he added.

The rupee’s sharp decline has emerged as one of the biggest economic warning signs for policymakers, investors and businesses. Once considered among Asia’s more stable currencies, the rupee has now become one of the worst-performing emerging market currencies this year, pressured by a toxic mix of expensive oil, capital outflows, widening trade deficits and a surging U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.42, higher by 0.09%.

Brent crude, the global oil benchmark, was trading down 2.77% at $109.95 per barrel in futures trade.

The U.S. Senate advanced legislation on Tuesday (May 19, 2026) that seeks to force President Donald Trump to withdraw from the Iran war, as a growing number of Republicans defied Trump’s wishes.

On the domestic equity market front, Sensex rose by 117.54 points to settle at 75,318.39, and Nifty was up 41 points to 23,659.

Foreign Institutional Investors turned net sellers after three sessions of buying and offloaded equities worth ₹2,457.49 crore on Tuesday (May 19, 2026), according to exchange data.