The Indian rupee opened with a negative outlook as the dollar strengthened and US treasury yields increased, depreciating by 18 paise to 96.38 against the US dollar. Market sentiments have been subdued, largely due to escalating tensions between the US and Iran.
Forex traders indicated that the rupee remains sensitive to rising crude oil prices, compounded by the closure of the Strait of Hormuz, which affects trade routes to Gulf countries. In the interbank foreign exchange market, the rupee opened at 96.38 against the dollar, a decline of 18 paise from the previous close. On Monday, the Indian rupee further weakened, closing at a record low of 96.20 against the US dollar.
“The market’s most significant challenge currently is not only direction but also confidence. Until there is a noticeable easing in global tensions and stability in foreign capital flows, the rupee may continue to exhibit pressure with heightened volatility,” said Amit Pabari, Managing Director of CR Forex Advisors. He noted that technically, the 94.80 to 95.10 range could serve as a crucial support zone for the USDINR pair. However, in light of persisting global risk factors, the pair seems to be shifting towards the 97 mark.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading at 99.10, down by 0.09 percent due to ongoing tensions related to Iran. In futures trading, Brent crude, the global oil benchmark, fell by 1.91 percent to USD 109.96 per barrel.
On the domestic equity front, the Sensex rose 366.71 points to 75,706.88 in early trading, while the Nifty gained 107.45 points to reach 23,760. Foreign Institutional Investors were net purchasers for the third consecutive session, buying equities worth Rs 2,813.69 crore on Monday, according to exchange data.
Additionally, a senior official from the petroleum ministry stated on Monday that India will continue to buy Russian oil, irrespective of US sanctions, prioritizing commercial viability and energy security. “Regarding the American waiver on Russia, it’s important to emphasize that our purchases from Russia have been ongoing—before, during, and after the waiver,” said Sujata Sharma, joint secretary in the petroleum ministry, at a media briefing.
Published on May 19, 2026.
