The rupee fell 8 paise to 95.25 against the U.S. dollar in early trade on Monday (August 10, 2026), weighed down by a stronger greenback and a rise in global crude oil prices.

However, FII inflows and a rise in the country’s forex reserves capped a sharper fall in the local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 95.18 before slipping further to 95.25, down 8 paise from its previous close.

The rupee settled with a 5 paise gain at 95.17 against the U.S. dollar on Friday (August 7, 2026).

“Overall, USD/INR remained range-bound around 95.20-95.30, with the rupee ending the session (on Friday) marginally stronger. Strong forex reserves also provided confidence and limited dollar-demand pressure,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

“Exporters may sell upticks up to 95.40 on Monday (August 11, 2026), while importers are likely to buy dips at 95. Traders will keep a close watch on developments in West Asia as well as the Reserve Bank of India (RBI),” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.70, up 0.17%.

Brent crude, the global oil benchmark, was trading higher by 0.91% at $84.31 per barrel in futures trade.

On the domestic equity market front, Sensex was down marginally by 19.38 points to 78,479.79 in early trade on Monday (August 11, 2026) while the Nifty slipped 5.10 points to 24,567.45.

Foreign institutional investors purchased equities worth ₹480.24 crore on a net basis on Friday (August 7, 2026), according to exchange data.

The RBI data released on Friday (August 7, 2026) showed the country’s forex reserves jumped by $10.512 billion to $692.866 billion during the week ended July 31. The overall kitty had jumped by $6.118 billion to $682.354 billion in the previous reporting week.

The rupee gained 39 paise to 94.89 against the U.S. dollar in early trade on Wednesday (August 5, 2026), supported by falling crude oil prices following progress in U.S.-Iran talks and a pause in planned strikes.

Forex traders said investors are closely awaiting the upcoming RBI monetary policy decision for further cues.

At the interbank foreign exchange market, the rupee opened at 94.90, then touched 94.89, registering a gain of 39 paise from its previous close.

On Tuesday (August 4, 2026), the rupee closed at 95.28 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.80, down 0.06%.

Brent crude, the global oil benchmark, was trading lower by 1.11% at $78.48 per barrel in futures trade.

On the domestic equity market front, the Sensex climbed 375.01 points to 78,803.96 in early trade, while the Nifty was up 62.7 points to 24,677.60.

Foreign institutional investors purchased equities worth ₹2,446.47 crore on a net basis on Tuesday (August 4, 2026), according to exchange data.

Forex traders said attention has now shifted to this week’s RBI policy meeting.

The three-day meeting of the Reserve Bank of India’s rate-setting panel started on Monday (August 3, 2026) amid expectations of a status quo on the benchmark repo rate, with the Monetary Policy Committee slated to announce its decision on August 5.

In June, the Reserve Bank had kept its key policy rate unchanged at 5.25% and adopted a cautious wait-and-watch stance as policymakers assessed the fallout of the West Asia conflict.

The RBI policy decision is widely expected to keep the repo rate unchanged at 5.25%. The real focus, however, will be on the RBI’s tone. Even if rates remain unchanged, any indication that the RBI is becoming more cautious about inflation could have a bigger impact on the rupee than the policy decision itself,” CR Forex Advisors MD Amit Pabari said.

Mr. Pabari further noted that optimism around the Hormuz talks could help the rupee test its support zone of 94.80-95.00. As “long as this holds, the pair may gradually drift back toward 95.80-96.20 over the coming sessions. But if the Hormuz deal actually goes through, the rupee could see a sharper move of 30 to 40 paise on the stronger side,” he said.