The Indian rupee depreciated by 17 paise to 95.43 against the US dollar in the early trading session on Tuesday, primarily due to month-end demand for dollars and rising crude oil prices, which impacted investor sentiment.
Forex analysts noted that the continued volatility of the rupee may persist as geopolitical tensions remain high. They suggested that interventions by the Reserve Bank of India (RBI) and liquidity measures could offer short-term relief, helping to stabilize fluctuations in the currency.
At the interbank foreign exchange market, the rupee opened at 95.43 against the dollar, a decrease from its previous close. On Monday, the currency had appreciated by 34 paise, finishing at 95.26 due to RBI’s intervention in the market, which maintained support for the rupee at higher levels.
In the broader commodities market, Brent crude prices increased following a dip earlier, hitting a mark of USD 93 per barrel. Reports of renewed attacks against Iran contributed to the price rise, countering earlier optimism about negotiations to reopen the Strait of Hormuz.
President Donald Trump mentioned on Monday that talks with Iran regarding a resolution to the conflict were progressing, though officials indicated that complexities in communication with Iran’s supreme leader could delay final decisions.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, remarked, “With the RBI actively involved, speculative pressure on the rupee has decreased noticeably. An improved risk appetite in equities has also kept the rupee stronger against the dollar.”
Meanwhile, the dollar index, which measures the strength of the US dollar against a basket of six currencies, was recorded at 99.04, down by 0.19 percent. Brent crude was trading up 1.84 percent at USD 97.91 per barrel in futures markets.
On the domestic equity front, the Sensex opened down 264.82 points at 76,224.14, while the Nifty fell by 27.6 points to 24,004.10.
Foreign institutional investors emerged as net buyers, acquiring equities worth Rs 821.75 crore on Monday, as per exchange data.
Published on May 26, 2026.
