Rupee falls 7 paise to close at 95.68 against U.S. dollar

The rupee depreciated 7 paise to close at 95.68 (provisional) against the U.S. dollar on Tuesday (August 18, 2026), weighed down by elevated crude oil prices and lingering geopolitical tensions in West Asia.

Forex traders stated the USD/INR pair is expected to trade with a slight negative bias, pressured by the delay in the agreement between the U.S. and Iran, rising crude oil prices and broader dollar backing.

At the interbank foreign exchange, the rupee opened at 95.68 against the greenback and traded in a range of 95.64-95.69 during the session. It eventually settled at 95.68 (provisional), lower by 7 paise from its previous close.

“With Brent crude rising above $90/bbl and the reopening of the Strait of Hormuz remaining unresolved, oil prices will remain a key monitorable for the rupee, inflation and foreign flows,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Moreover, weak global cues and FII selling weighed on sentiment, with FIIs selling equities worth ₹2,535 crore on Monday (August 17, 2026), their highest selling in three weeks, Mr. Khemka said, adding that “the U.S. 10-year Treasury yield remained elevated”.

Meanwhile, the dollar index. It gauges the greenback’s strength against a basket of six currencies, was trading at 99.60, down 0.04%.

Brent crude, the global oil benchmark, was trading higher by 0.01% at $90.88 per barrel in futures trade.

While resilient domestic fundamentals and continued policy support could provide a constructive medium-term backdrop, Mr, overall, elevated crude prices, geopolitical uncertainty and foreign selling are probable to keep near-term sentiment subdued. Khemka said.

While the Nifty fell 132.75 points to close at 24,154.90, on the domestic equity market front, Sensex tanked 492.70 points to settle at 77,235.46.

Foreign institutional investors offloaded equities worth ₹2,535.10 crore on a net basis on Monday (August 17, 2026), according to exchange data.