The rupee recovered 18 paise to close at 96.55 (provisional) against the U.S. dollar on Friday (July 24, 2026), amid likely intervention by the Reserve Bank of India (RBI).

A combination of factors, including heightened tensions in West Asia, Foreign Institutional Investor outflows, and sustained negative sentiments at the domestic equity markets, maintained pressure on the local unit, according to forex traders.

At the interbank foreign exchange, the rupee opened weaker at 96.81 and traded in the range of 96.30-96.81 before eventually settling at 96.55 (provisional), up 18 paise from its previous close.

The rupee ended 20 paise weaker at 96.73 against the U.S. dollar on Thursday (July 23, 2026).

The U.S. military announced the 13th night of strikes on Thursday (July 23, 2026) against Iran as clashes escalated over shipping routes. The attacks came after Yemen’s Houthi rebels said they attacked two Saudi oil tankers in the Red Sea, potentially widening the Iran war as international oil topped $100 a barrel.

V. K. Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, “The rupee has been stable on Friday, trading around 96.55 to the dollar at 3.30 p.m. There are reports of RBI intervention to prevent further depreciation of the rupee. Some PSU banks are also reported to have sold dollars to stabilise the rupee. If crude declines next week, it can further help the rupee to stabilise.”

“We expect the rupee to trade with a negative bias on further escalation in tensions between the U.S. and Iran. Elevated crude oil prices may also pressure the rupee. However, diplomatic talks between the two nations may prevent a sharp fall in the rupee,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.

Any intervention by the RBI may also support the rupee at lower levels, he said, adding that the USD-INR spot price is expected to trade in a range of ₹96.30-96.85. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally down by 0.06% at 101.38.

Brent crude, the global oil benchmark, crossed the $100 mark, trading 0.25% lower at $100.4 per barrel in futures trade.

On the domestic equity market front, Sensex settled lower for the fifth day in a row, falling 331.62 points, or 0.43%, to 76,059.77, while the Nifty was down 102.15 points, or 0.43%, to 23,767.45.

Foreign Institutional Investors offloaded equities worth ₹2,999.23 crore on a net basis on Thursday (July 23, 2026), according to exchange data.

The rupee declined 4 paise to close at 96.57 (provisional) against the U.S. dollar on Thursday (July 23, 2026), as heightened hostilities in West Asia kept global crude oil prices elevated.

However, a likely intervention by the RBI provided support to the local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 96.53 and traded in a narrow range of 96.45-96.59 during the day before eventually settling at 96.57 (provisional), down 4 paise from its previous close.

The rupee depreciated by 28 paise to close at 96.53 against the U.S. dollar on Wednesday (July 22, 2026).

“The rupee traded with a negative bias on weak domestic markets and a surge in crude oil prices, which continued to rise as the U.S. struck Iran for the 12th consecutive day while Iran continued to strike U.S. facilities in the Gulf,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.

“However, diplomatic talks between the two nations may prevent a sharp fall in the rupee. USD-INR spot price is expected to trade in a range of ₹96.30 to ₹96.85,” Mr. Choudhary said.

V. K. Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said, “The negative factor impacting the rupee is the sharp spike in Brent crude following the escalation of the conflict in West Asia, particularly the attack on Saudi oil tankers by the Houthis.”

RBI’s intervention in the market will prevent sharp depreciation in the rupee, he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading flat at at 101.12.

Brent crude, the global oil benchmark, was trading 2.21% higher at $96.15 per barrel in futures trade.

Forex traders said crude oil prices remain elevated amid concerns over the security of oil shipments through the Red Sea and Strait of Hormuz.

On the domestic equity market front, Sensex extended losses on Thursday (July 23, 2026) declining 363.66 points to settle at 76,391.39, while the Nifty was down 126.65 points to 23,869.60.

Foreign Institutional Investors offloaded equities worth ₹819.20 crore on a net basis on Wednesday (July 22, 2026), according to exchange data.

The rupee rose 5 paise to 96.11 against the U.S. in early trade on Wednesday (July 15, 2026), amid heightened tensions in West Asia and a weaker greenback.

Higher crude oil prices and Foreign Institutional Investor outflows prevented a sharper rise in the local unit while a positive opening in the domestic equity markets lent support, forex traders said.

At the interbank foreign exchange market, the rupee opened at 96.12 and inched up to 96.11, up 5 paise from its previous close.

The unit depreciated 48 paise to close at 96.16 against the U.S. dollar on Tuesday (July 14, 2026).

Iran on Wednesday (July 15, 2026), threatened to halt all energy exports from West Asia over the U.S. reimposing a naval blockade on the Islamic Republic.

In a statement carried by the Iranian state television, the paramilitary Revolutionary Guard threatened oil and gas exports from the region. “The export of oil and gas from the region will be either for everyone or for no one,” it said.

“The rupee came under significant pressure on Tuesday (July 15, 2026), slipping past the 96-level for the first time since May as a combination of surging crude oil prices, higher U.S. Treasury yields, and geopolitical tensions triggered broad dollar demand. Brent climbed to its highest level in over a month after the US-Iran conflict intensified,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

The rupee is set to trade in the range of 95.90-96.50, he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.81, down 0.11%.

Brent crude, the global oil benchmark, rose by 1.10% to $85.66 per barrel in futures trade.

On the domestic equity market front, stock markets rebounded in early trade with the Sensex rising 553 points to 77,603.57 and the Nifty up 148.15 points to 24,198.40.

Foreign Institutional Investors on Tuesday (July 14, 2026), offloaded equities worth ₹739.69 crore in the domestic equity market, according to exchange data.

On the domestic macroeconomic front, wholesale price inflation shot up to 9.87% in June, from 9.68% in May, led by a sharp spike in prices of food and non-food items.

Net direct tax collection grew 16.40% to over ₹6.51 lakh crore till July 13 this fiscal year, driven by higher corporate tax mop-up, government data showed on Tuesday (July 14, 2026).