Mumbai, August 18, 2026: The Indian rupee weakened 7 paise to ₹95.68 against the U.S. dollar in early trading on Tuesday, pressured by elevated crude oil prices and persistent demand for the greenback.

At the interbank foreign exchange market, the rupee opened at ₹95.68, compared with Monday’s close of ₹95.61. The currency had already declined 19 paise in the previous session amid pressure from higher oil prices and a weaker market environment.

Crude Oil Prices Add Pressure

Brent crude, the global oil benchmark, was trading around $91 per barrel, with futures rising 0.52% to $91.34 a barrel. Higher crude prices tend to increase India’s import bill and demand for dollars, putting additional pressure on the rupee.

Market participants were also monitoring geopolitical developments involving the U.S. and Iran, particularly uncertainty surrounding the Strait of Hormuz and the lack of progress toward a peace deal.

Forex traders further pointed to concerns over future dollar inflows following the Reserve Bank of India’s earlier-than-expected closure of its concessional FCN(B) foreign-exchange swap facility.

Dollar Index and Equity Markets

The dollar index, which measures the greenback against a basket of six major currencies, was trading at 99.63, marginally lower by 0.01%.

Domestic equities also opened under pressure. The Sensex was down 278.32 points at 77,450.64, while the Nifty declined 57.65 points to 24,230.45 in early trade. Foreign institutional investors sold equities worth ₹2,535.10 crore on a net basis on Monday, according to exchange data.

Analysts expect the rupee to remain sensitive to crude oil prices, geopolitical developments, foreign capital flows and movements in global bond yields in the near term.