Rupee fell 10 paise to close at 94.95 against US dollar

The rupee fell 10 paise to close at 94.95 (provisional) against the US dollar on Monday (June 01, 2026) amid renewed geopolitical tensions between the US and Iran and rise in crude oil prices. Forex traders said the US currency’s strength in the overseas market and Israel-Lebanon tensions also worsened global risk sentiments.

At the interbank foreign exchange market, the rupee opened at 94.93 against the US dollar, then touched a high of 94.73 and a low of 95.03 during the day. At the end of the trading session on Monday (June 01, 2026), the rupee was quoted at 94.95 (provisional), 10 paise lower than its previous close.

On Friday (May 31, 2026), the rupee gained 73 paise to close at 94.85 against the US dollar due to suspected RBI intervention. “We expect the rupee to trade with a slight downside bias due to renewed geopolitical tensions and overnight rise in crude oil prices. A stronger dollar and rising US treasury yields may also weigh on the rupee,” said Anuj Chaudhary, Research Analyst, Mirae Asset Sharekhan. Mr Chaudhary further said that any sustained peace talks could stop the sharp decline. “USDINR spot price is expected to remain in the range of 94.60 to 95.30,” he said.

Forex traders said the focus has now shifted towards the upcoming RBI Monetary Policy Committee meeting to be held on June 3-5. The six-member Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, will announce its decision on June 5.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.04, up 0.10%. Global oil benchmark Brent crude was trading 3.47% higher at $94.28 a barrel in futures trade.

On the domestic equity market front, Sensex fell 508.40 points to close at 74,267.34, while Nifty fell 165.15 points to 23,382.60. According to exchange data, foreign institutional investors sold equities worth ₹21,105.86 crore on a net basis on Friday (May 29, 2026).

India’s foreign exchange reserves declined by $7.511 billion to $681.384 billion during the week ended May 22, according to the latest RBI data released on Friday (May 29, 2026). In the past week, the kitty had fallen by $8.094 billion to $688.894 billion. Gross GST collections rose 3.2% to over ₹1.94 lakh crore in May due to higher supply of goods and services as well as collections from imports, according to government data released on Monday (June 1, 2026).

Meanwhile, US President Donald Trump has said the US and Iran are close to a “very good deal”, but if Washington doesn’t get what it wants, he will “end it in a different way.” Mr Trump said the Iranians are “good negotiators”, but argued that the United States now holds “all the cards” because Iran “has been defeated militarily.”