The Indian Rupee depreciated by 10 paise, opening at 95.25 and reaching 95.28 against the U.S. dollar in early trade on Monday. This decline is primarily attributed to the strengthening of the American currency in international markets. Forex traders suggest that the Central Bank is likely to utilize fresh foreign inflows to support its reserve position rather than allowing a significant appreciation of the Rupee. Adding to market pressure, ongoing uncertainties surrounding the progress of U.S.-Iran peace talks have introduced a geopolitical risk premium.
This marks a reversal from the previous Friday, July 3, 2026, when the Rupee had appreciated by 17 paise to close at 95.18 against the U.S. dollar. Amit Pabari, MD of CR Forex Advisors, commented on the Rupee’s underlying fragility, noting its inability to gain traction even with positive factors like falling oil prices and a softer dollar. He indicated that any new negative developments could push the USD-INR pair towards the 95.80-96.00 range, with immediate support expected around 94.80-95.00.
Globally, the dollar index saw a slight easing to approximately 100.90, despite weaker-than-expected U.S. jobs data. Brent crude futures traded lower by 0.58% at $71.70 per barrel. Domestically, the Indian equity market showed resilience, with the Sensex climbing 281.40 points to 78,051.03 and the Nifty rallying 74.60 points to 24,347.05 in early trade. Foreign institutional investors were net buyers, investing ₹1,355.33 crore in equities on Friday. However, India’s foreign exchange reserves experienced a decline of $5.654 billion, settling at $666.933 billion for the week ended June 26, 2026, a decrease from the all-time high of $728.494 billion recorded earlier in the year before the West Asia conflict.
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