The Indian rupee extended its downward run on Tuesday morning, opening weaker at 96.38 against the US dollar in early interbank trade. The rupee exchange rate crosses ₹96 per dollar threshold once again as escalating tensions in the Middle East, a firm greenback, and rising US treasury yields continue to drag the domestic currency lower.
The fall comes a day after the rupee settled at a record closing low of 96.35 against the US dollar on Monday, May 18. At the interbank foreign exchange market on Tuesday, the rupee opened with a clear negative bias, with sentiment dampened by simmering frictions between the United States and Iran. Forex traders said the currency remains vulnerable to the spike in crude oil prices, while the reported closure of the Strait of Hormuz has raised fresh worries about the smooth flow of India’s exports and imports to and from Gulf nations.
The dollar index, which gauges the greenback against a basket of six major currencies, was trading at 99.10, marginally lower by 0.09 per cent in the wake of Iran-related uncertainty. Brent crude, the global oil benchmark, was down 1.91 per cent at USD 109.96 per barrel in futures trade — still at elevated levels that put added pressure on India’s import bill.
Domestic equities, however, opened on a positive note. The BSE Sensex climbed 366.71 points to 75,706.88 in early trade, while the NSE Nifty advanced 107.45 points to 23,760. Exchange data showed Foreign Institutional Investors (FIIs) remained net buyers for the third consecutive session, picking up equities worth ₹2,813.69 crore on Monday.
Speaking on the rupee’s persistent weakness, CR Forex Advisors Managing Director Amit Pabari said, “The market’s biggest challenge right now is not just direction — it’s confidence. Until there is visible cooling in global tensions and stability in foreign flows, the rupee may continue trading under pressure with volatility staying elevated.”
Pabari added that on the technical charts, the 94.80–95.10 zone is expected to act as an important support area for the USD-INR pair. However, with no meaningful signs of easing in the broader global risk environment, the pair appears to be gradually shifting its focus toward the 97 mark.
For now, the rupee remains caught between firm crude oil prices, geopolitical jitters out of the Gulf, and steady dollar demand — a combination that has kept the currency under sustained pressure through 2026. All eyes are now on whether any cooling of US-Iran tensions or a softening in oil prices can offer the rupee the breathing space it badly needs.
