The Indian rupee depreciated by 47 paise, closing at 95.73 against the US dollar on Tuesday, driven by renewed geopolitical tensions in West Asia and an increase in crude oil prices. Forex traders noted that a strong US dollar alongside weak domestic markets contributed to the rupee’s decline.
During trading at the interbank foreign exchange market, the rupee opened at 95.43 against the dollar, reaching an intra-day high of 95.33 and a low of 95.76. By the end of Tuesday’s trading session, it was adjusted to 95.73, reflecting a drop of 47 paise from the previous close.
On Monday, the rupee had appreciated by 34 paise, ending at 95.26, as the Reserve Bank of India intervened by selling dollars, thereby supporting the currency at higher levels. Analysts indicate that the rupee is likely to maintain a negative bias due to the uncertainties surrounding US-Iran relations and worries about military actions in the Middle East. However, a potential softening in crude oil prices could provide some support at lower levels. Anuj Choudhary, a Research Analyst at Mirae Asset ShareKhan, anticipates that the USD/INR spot price will trade within the range of 95.20 to 95.85.
Forex traders remain cautious as the rupee is affected by increasing crude oil prices and the strength of the US dollar in the global market. The dollar index, which measures the currency’s strength against a basket of six currencies, was reported at 99.05, reflecting a decline of 0.19 percent.
Brent crude, the global oil benchmark, rose by 3.43 percent to USD 99.94 per barrel in futures trading, following reports of renewed US military actions against Iran. These developments have overshadowed hopes for an agreement to reopen the Strait of Hormuz. US President Donald Trump stated on Monday that negotiations with Iran regarding the conflict were progressing “nicely,” though officials highlighted that a definitive resolution may require additional time due to the complexities of engaging with Tehran’s political structures.
In the domestic equity markets, the Sensex fell by 479.26 points to close at 76,009.70, while the Nifty decreased by 118 points, finishing at 23,913.70. Despite the volatility in currency and equity markets, foreign institutional investors emerged as net buyers on Monday, acquiring equities worth Rs 821.75 crore, according to stock exchange data.
Published on May 26, 2026.
