Rupee slips 4 paise to 95.74 against US dollar in early trade

New Delhi: Elevated crude prices and importer dollar demand kept the currency under pressure, while RBI intervention helped limit losses amid renewed Iran-related geopolitical uncertainty.

The rupee moved in a narrow range and weakened 4 paise to 95.74 against the US dollar in early trade on Tuesday, as higher crude prices and dollar demand from importers weighed on the domestic currency.

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Forex traders said continued intervention by the Reserve Bank of India (RBI) through state-run banks helped contain the rupee’s decline, keeping the USD/INR pair range-bound despite weakness in Asian equities and renewed geopolitical uncertainty surrounding Iran.

At the interbank foreign exchange market, the rupee opened at 95.74, down 4 paise from its previous close. On Monday, the currency had ended marginally higher by 1 paisa at 95.70 against the US dollar.

“Overall, the rupee remains firmly range-bound around Rs 95.50–96.00, with oil prices and RBI intervention likely to remain the key near-term drivers,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

Bhansali said the rupee has remained within a tight range over the past two weeks, with oil companies and the RBI buying dollars at lower levels, while the central bank has also been supporting the rupee by selling dollars around the 95.75 level.

Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, was up 0.04 percent at 99.04. The dollar drew support from safe-haven demand following the US escalation of sanctions against Iran, although expectations surrounding Treasury bond buybacks continued to weigh on the currency.

Brent crude, the global oil benchmark, rose 0.30 percent to USD 92.45 a barrel in futures trading, adding to pressure on the rupee.

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In domestic equity markets, the Sensex declined 30 points to 77,336.32 in early trade, while the broader Nifty fell 38.80 points to 24,179.50.

Foreign institutional investors remained net buyers of Indian equities on Monday, purchasing shares worth Rs 1,181.66 crore, according to exchange data.

On the domestic macroeconomic front, the RBI’s special USD-INR forex swap facility for FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECB) had mobilised USD 73 billion in foreign exchange inflows as of August 21, 2026. The inflows reflect strong participation from Non-Resident Indians (NRIs).

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