Rupee Slips to 95.29 Against US Dollar, Down 10 Paise

Indian Rupee Depreciates Against US Dollar Amid Global Crude Oil Price Surge

The Indian rupee depreciated 10 paise to close at 95.29 (provisional) against the US dollar on Tuesday, as global crude oil prices jumped and the American currency remained firm amid massive safe-haven inflows. Forex traders attributed significant foreign fund outflows as a contributing factor to the decline in investor sentiments.

At the interbank foreign exchange market, the rupee opened at 95.16 against the US dollar, touching an intraday high of 95.03 and a low of 95.31. The rupee's provisional closing price of 95.29 on Tuesday represents a 10 paise decline from its previous close.

The rupee's depreciation follows a similar trend observed on Monday, when it depreciated 34 paise to close at 95.19 against the US dollar. Analysts expect the rupee to trade with a negative bias due to renewed geopolitical tensions and a surge in crude oil prices.

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The Reserve Bank of India (RBI) Monetary Policy Committee meeting is scheduled for June 3-5, with the six-member MPC headed by RBI Governor Sanjay Malhotra announcing its decision on June 5. Investors may watch out for the RBI's monetary policy this week, as it may impact the USDINR spot price, which is expected to trade in a range of 94.90 to 95.50.

In related news, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.12, down 0.08 per cent. Brent crude, the global oil benchmark, was trading lower by 1.66 per cent at USD 93.40 per barrel in futures trade.

On the domestic equity market front, the Sensex climbed 382.50 points to settle at 74,649.84, while the Nifty gained 100.95 points to 23,483.55. Foreign institutional investors offloaded equities worth Rs 3,911.68 crore on a net basis on Monday, according to exchange data.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Domestic macroeconomic indicators also showed a positive trend, with India's industrial production expanding by 4.9 per cent in April, and manufacturing output growing 6.2 per cent. The government successfully met its fiscal deficit target of 4.4 per cent of GDP for FY26, exactly matching its budget estimate.

Meanwhile, US President Donald Trump on Monday said talks were continuing with Iran at a rapid pace. Additionally, Trump stated that he has persuaded Prime Minister Benjamin Netanyahu to call off the strike on Beirut, following which the Israeli leader "turned his troops around".