The rupee declined 11 paise to close at 94.74 (provisional) against the U.S. dollar on Tuesday (June 23, 2026), weighed down by a firm greenback and weak domestic markets.

However, a decline in global crude oil prices cushioned against a sharper decline in the local unit, forex traders said. At the interbank foreign exchange, the rupee opened at 94.73 against the U.S. dollar and traded in a range of 94.63-94.92 before settling at 94.74 (provisional), down 11 paise from its previous close.

The rupee depreciated 30 paise to close at 94.63 against the U.S. dollar on Monday (June 23).

"The rupee declined on a firm U.S. dollar and weak domestic markets. Importers' demand for hedging also weighed on the domestic currency. However, falling crude oil prices and a softening in U.S. Treasury yields cushioned the downside. The U.S. waiver on sanctions on Iranian oil has led to a sharp fall in oil prices," Anuj Choudhary, Research analyst at Mirae Asset ShareKhan, said.

"We expect the rupee to trade with a negative bias on strengthening of the U.S. dollar amid hawkish Fed and weak global markets," he said.

V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said, "Rupee is likely to trade in a range of 94.60 to 94.95 in the near term. The future trend will be significantly influenced by data on FCNR B deposits mobilised by commercial banks. If this scheme succeeds in mobilising a big amount, as many people believe, the rupee can appreciate over a period, assisted by the low crude prices." As things stand, there is no risk of significant depreciation of the rupee, Vijayakumar added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.09, up 0.07%, amid hawkish Fed and the fragile U.S.-Iran trade deal.

Brent crude, the global oil benchmark, was trading lower by 0.54% at $77.48 per barrel in futures trade. On the domestic equity market front, Sensex tanked 893.39 points, or 1.16%, to 76,200.68, while the Nifty fell 278.80 points, or 1.16%, to 23,824.10.

Foreign institutional investors offloaded equities worth Rs 635.91 crore on a net basis on Monday (June 22), according to exchange data.