The rupee declined 4 paise to close at 96.57 (provisional) against the U.S. dollar on Thursday (July 23, 2026), as heightened hostilities in West Asia kept global crude oil prices elevated.

However, a likely intervention by the RBI provided support to the local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 96.53 and traded in a narrow range of 96.45-96.59 during the day before eventually settling at 96.57 (provisional), down 4 paise from its previous close.

The rupee depreciated by 28 paise to close at 96.53 against the U.S. dollar on Wednesday (July 22, 2026).

“The rupee traded with a negative bias on weak domestic markets and a surge in crude oil prices, which continued to rise as the U.S. struck Iran for the 12th consecutive day while Iran continued to strike U.S. facilities in the Gulf,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.

“However, diplomatic talks between the two nations may prevent a sharp fall in the rupee. USD-INR spot price is expected to trade in a range of ₹96.30 to ₹96.85,” Mr. Choudhary said.

V. K. Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said, “The negative factor impacting the rupee is the sharp spike in Brent crude following the escalation of the conflict in West Asia, particularly the attack on Saudi oil tankers by the Houthis.”

RBI’s intervention in the market will prevent sharp depreciation in the rupee, he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading flat at at 101.12.

Brent crude, the global oil benchmark, was trading 2.21% higher at $96.15 per barrel in futures trade.

Forex traders said crude oil prices remain elevated amid concerns over the security of oil shipments through the Red Sea and Strait of Hormuz.

On the domestic equity market front, Sensex extended losses on Thursday (July 23, 2026) declining 363.66 points to settle at 76,391.39, while the Nifty was down 126.65 points to 23,869.60.

Foreign Institutional Investors offloaded equities worth ₹819.20 crore on a net basis on Wednesday (July 22, 2026), according to exchange data.