The Indian rupee registered a marginal increase of 2 paise, settling at 95.68 (provisional) against the US dollar on Wednesday, amid renewed geopolitical tensions between the US and Iran and ongoing negotiation delays that have made investors wary.
Forex traders noted that a robust American dollar, coupled with weak performance in domestic markets, exerted pressure on the rupee. Attention is now focused on the upcoming Reserve Bank of India (RBI) Monetary Policy Committee meeting scheduled for June 3 to 5.
In the interbank foreign exchange market, the rupee opened at 95.60 against the dollar, reaching an intra-day low of 95.79 before closing at 95.68. This marks a decline of 2 paise from its previous close. On Tuesday, the rupee had dropped 44 paise, ending the day at 95.70.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, indicated expectations for the rupee to trade with a negative bias due to ongoing tensions between the US and Iran, alongside worries about potential military actions in the Middle East. However, he noted that a recent decline in crude oil prices might provide some support for the rupee at lower levels. The USDINR spot price is anticipated to fluctuate between 95.50 and 96.10.
The dollar index, which measures the strength of the US dollar against a basket of six currencies, was trading at 99.07, down 0.10 percent. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, commented that uncertainty surrounding the Strait of Hormuz continues to bolster the dollar as a safe haven.
Brent crude oil, which serves as the global oil benchmark, was trading lower by 3.02 percent at USD 96.57 per barrel in futures trading.
On the domestic equity front, the Sensex fell 141.90 points, closing at 75,867.80, while the Nifty declined by 6.55 points to settle at 23,907.15. Foreign institutional investors were reported to have offloaded equities worth Rs 2,407.87 crore on Tuesday, according to exchange data.
Published on May 27, 2026.
