The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 95.33, up 0.42 per cent. | Photo Credit: HEMANSHI KAMANI

Rupee fell 17 paise to 95.35 against US dollar in early trade on Monday, weighed down by the strength of the American currency in the overseas market amid strong US economic data and continuing geopolitical uncertainty.

Forex traders said elevated Brent crude prices dented investor sentiments. Crude oil prices surged after Iran launched multiple rounds of missiles toward Israel, raising concerns about the stability of the region and the durability of ceasefire efforts.

Investors are also monitoring developments in West Asia and awaiting key economic data from the US, which could set the path for fresh clues from the US Federal Reserve on interest rate path, they said.

At the interbank foreign exchange market, the rupee opened at 95.35 against the US dollar, down 17 paise from its previous close.

On Friday, the rupee appreciated 56 paise to close at 95.18 against the US dollar, marking its strongest single-day gain in almost two months, 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 95.33, up 0.42 per cent.

Brent crude, the global oil benchmark, was trading higher by 3.43 per cent at $96.28 per barrel in futures trade after Iran launched multiple rounds of missiles toward Israel.

"Although Israeli authorities reported that all missiles were intercepted and no casualties occurred, the episode served as a reminder that geopolitical risks remain elevated. US President Donald Trump has urged restraint from both sides and called for renewed negotiations with Iran, but markets remain cautious and so does rupee," CR Forex Advisors MD, Amit Pabari said.

Pabari further added that the medium-term outlook for the USD/INR pair remains positive, with USDINR likely to break below 94.50 and gradually move towards the 94.00-93.80 zone, external factors will remain crucial.

"Any escalation in US-Iran tensions, leading to a stronger dollar or higher oil prices, could temporarily push the pair back towards the 95.30-95.50 range," he said.

On the domestic equity market front, Sensex tumbled 724.95 points to 73,518.39 in early trade, while the Nifty dropped 222.45 points to 23,138.60.

Foreign institutional investors offloaded equities worth ₹8,776.25 crore on a net basis on Friday, 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. In the previous reporting week, the kitty dropped $7.511 billion to $681.384 billion.

Meanwhile, US President Donald Trump has asked Israel 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.

Published on June 8, 2026