The rupee pared most of its initial gains and settled for the day higher by just 6 paise at 94.34 (provisional) against the U.S. dollar on Friday (June 19, 2026), as a firming dollar index and rising crude oil prices weighed on investor sentiments.

Forex traders said the rupee opened on a positive note, on optimism that trade negotiations between India and the U.S. are set to gain momentum.

Indian Foreign Secretary Vikram Misri on Thursday (June 18, 2026) said trade was a major subject of discussion between Prime Minister Narendra Modi and U.S. President Donald Trump, with both leaders directing their negotiators to finalise the proposed trade pact at the earliest.

However, market sentiments weakened amid uncertainty over the U.S.-Iran peace deal, traders said.

U.S. Vice-President J.D. Vance has put off his visit to Switzerland for talks with Iranian negotiators, with the White House citing logistical issues.

At the interbank foreign exchange, the rupee opened at 94.30 against the U.S. dollar and traded in the range of 94.20-94.52. Eventually, it settled at 94.34 (provisional), up 6 paise from its previous close.

On Thursday (June 18, 2026), the rupee settled 10 paise higher at 94.40 against the U.S. dollar.

“The rupee remains the lead performer among Asian peers, energised by a resurgence of capital inflows and cooling oil prices. With risk-on sentiment back in the driver’s seat, we expect the local rupee to march towards 94 on the back of dollar inflows. Technically, USD-INR spot is boxed between a crucial resistance at 94.90 and firm support at 94.10,” said Dilip Parmar, Research Analyst, HDFC Securities.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.76, lower by 0.08%.

Brent crude, the global oil benchmark, was trading down 0.65% at $79.33 per barrel in futures trade.

On the domestic equity market front, Sensex dived 607.08 points to settle at 76,802.90, while the Nifty fell 154.90 points to 24,013.10.

Foreign institutional investors offloaded equities worth ₹1,025.20 crore on a net basis on Thursday (June 18, 2026), according to exchange data.

Mr. Misri’s comments came a day after Mr. Modi and Mr. Trump held wide-ranging talks for the first time in 16 months on the margins of the G7 Summit in an attempt to rebuild strained bilateral ties.

Mr. Misri said significant progress has been made on the conclusion of the interim trade pact and that U.S. Trade Representative Jamieson Greer will be visiting India next week to take forward the discussions.