The Indian rupee weakened by 20 paise to open at ₹86.75 against the US dollar in early Monday trade, reversing gains from the previous session. The decline comes amid a surge in global crude oil prices and a strengthening US dollar, both of which exerted downward pressure on the local currency.
Forex traders noted that the rupee had appreciated by 14 paise on Friday to close at ₹86.59, buoyed by falling oil prices and a softer greenback. However, renewed geopolitical tensions — particularly following reports of a US strike on Iranian nuclear sites — have pushed crude prices higher, triggering risk aversion in emerging markets.
At the interbank foreign exchange, the rupee briefly touched ₹86.69 after opening at ₹86.75, reflecting a 14–20 paise drop from its previous close. Analysts expect continued volatility in the currency markets as investors monitor global developments and await cues from the US Federal Reserve on interest rate policy.
The Reserve Bank of India (RBI) is also expected to keep a close watch on currency fluctuations to ensure stability amid external headwinds.
