The rupee depreciated 56 paise to settle at 95.74 (provisional) against the American currency on Monday (June 8, 2026), pressured by elevated crude oil prices and the strength of the U.S. dollar in the overseas market due to higher risk aversion amid escalating geopolitical tensions.
Forex traders said the USD/INR pair erased the previous trading session’s gains on risk aversion in global markets. Further, a sharp jump in crude oil prices and a rise in the U.S. dollar index dented investor sentiment.
At the interbank foreign exchange market, the rupee opened at 95.35, then touched an intraday high of 95.15 and finally ended the session at 95.74 (provisional), registering a loss of 56 paise from its previous close.
On Friday (June 5), the rupee appreciated 56 paise to close at 95.18 against the U.S. dollar, after the Reserve Bank announced measures to support foreign capital inflows and strengthen forex liquidity.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 100.16, up 0.09%.
Brent crude, the global oil benchmark, was trading higher by 3.94% at $96.76 per barrel in futures trade after Iran launched multiple rounds of missiles toward Israel.
"We expect the rupee to trade with a negative bias on escalating geopolitical tensions between the U.S., Israel, and Iran and rising crude oil prices. A strong dollar and rise in U.S. treasury yields may also pressurise the rupee," said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.
Mr. Choudhary further noted that any intervention by the Reserve Bank may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of 95.40 to 96.10.
On the domestic equity market front, Sensex tanked 719.08 points to settle at 73,524.26, while the Nifty dived 243.70 points to 23,123.
Foreign institutional investors offloaded equities worth ₹8,776.25 crore on a net basis on Friday (June 5), according to exchange data.
India's forex reserve jumped by $938 million to $682.321 billion during the week ended May 28, the Reserve Bank said on Friday (June 5). In the previous reporting week, the kitty dropped $7.511 billion to $681.384 billion.
Meanwhile, U.S. President Donald Trump has asked Israeli Prime Minister Benjamin Netanyahu not to retaliate to Iran's latest barrage of missiles, saying it would jeopardise the ongoing negotiations for a peace deal to end the three-month-long conflict.
U.S. media outlet Axios reported that after Iran launched missiles at Israel on Sunday (June 7), Mr. Trump spoke to Mr. Netanyahu in a bid to prevent fresh tensions between the two nations from derailing the peace deal.
