The rupee pared initial gains and settled lower by 9 paise at 94.54 (provisional) against the U.S. dollar on Monday (June 29, 2026), as renewed geopolitical tensions hit investors’ risk appetite.

Forex traders said the rupee opened on a positive note with crude oil prices remaining supportive and foreign inflows improving, but a renewed flare-up in geopolitical tensions after fresh military exchanges between the U.S. and Iran dented investor sentiment.

Also read: West Asia war updates on June 29, 2026

At the interbank foreign exchange market, the rupee opened at 94.36, then gained momentum and touched an intraday high of 94.25 and a low of 94.56 against the American currency.

At the end of Monday’s trade, the rupee was quoted at 94.54 (provisional), down by 9 paise over its previous close.

On Thursday (June 25, 2026), the rupee settled at 94.45 against the U.S. dollar.

Indian stock, currency, and commodities markets were shut on Friday (June 26, 2026) on account of Muharram.

“We expect the rupee to trade with a negative bias on renewed geopolitical tensions between the U.S. and Iran. Overall strength in the U.S. dollar and a hawkish Fed may also pressurise the rupee.

“However, a decline in crude oil prices and easing concerns over inflation may support the rupee at lower levels. USD-INR spot price is expected to trade in a range of 94.20 to 94.80,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.28, down 0.07%.

Brent crude, the global oil benchmark, was trading higher by 1.26% at $72.90 per barrel in futures trade.

Iran again launched drone and missile attacks targeting Bahrain and Kuwait on Sunday (June 28, 2026) following new U.S. airstrikes against the Islamic Republic. Iran has threatened a “complete halt” in negotiations to end the war if Washington continues its attacks.

On the domestic equity market front, the Sensex dropped 372.10 points to settle at 76,728.37, while the Nifty declined 109.75 points to 23,946.25.

Foreign institutional investors purchased equities worth Rs 383.76 crore on a net basis on Thursday (June 25, 2026), according to exchange data.

Meanwhile, India’s forex reserves increased by $963 million to $672.587 billion during the week ended June 19, the RBI said on Friday (June 26, 2026). In the previous reporting week, the overall reserves had dropped by $9.985 billion to $671.625 billion.