The Indian rupee dropped against the US dollar ​on Thursday, almost wiping out gains from the central bank's ‌measures to attract dollar inflows, as weak ​Asian cues and persistent dollar demand from ⁠oil firms weighed.

The rupee opened lower at 95.52 per U.S. dollar and stayed under pressure since then, with bankers ‌pointing to sustained dollar demand, particularly from oil companies, alongside usual mid-month flows.

The currency ended ‌at 95.76, down 0.5%, barely holding on ‌to any ⁠of the gain notched on Friday.

"The ⁠dollar had weakened post the release of yesterday's U.S. inflation data, but reversed its weakness after news of escalation of conflict between ​U.S. and Iran," ‌Dhaval Shah, founder and managing director, De-Risk Forex Consultancy.

"Despite such strikes and a lapse of the ceasefire, we assess the war to be on a ‌de-escalatory path as indicated by neutral reaction of ​many financial assets, mainly oil."

U.S. strikes on Iran overnight dented hopes of a ⁠broader resolution to the conflict. In response, Iran said it would shut the Strait of Hormuz and conducted ‌counter-attacks on U.S. military targets in Kuwait and Bahrain.

Iran closing the strait is a reversal from recent weeks, when Iran had allowed limited transit for ships from friendly nations.

Benchmark Brent crude rose more than 2% earlier in the day before trimming gains to ‌trade marginally lower.

Shah said the recent upmove in USD/INR ​was a corrective rally, and added that a reversal will likely begin, with the pair easing ⁠to around 93.50 levels, supported by favourable RBI measures.

U.S. ⁠inflation data had limited impact on currency moves. Headline inflation rose to 4.2% on-year, its ‌highest in over three years, while a softer-than-expected core reading kept near-term Federal Reserve rate expectations largely ​unchanged.

Published on June 11, 2026