The Indian rupee ended little changed on Monday, retreating from a three-week high hit in early trade, as dollar demand from importers and state-run banks gathered pace, blunting the boost from a sharp fall in oil prices.
The currency, which climbed to a peak of 95.1275 as Brent crude prices slumped after U.S. President Donald Trump called off an imminent attack in hopes of quickly reaching a deal, ended at 95.3375 per dollar against the 95.38 previous close.
Talks between Washington and Tehran are scheduled on Monday, lifting global stocks, including those in Mumbai.
While the rupee received a sentimental boost from the lower oil prices, “there were very strong dollar bids around 95.15 levels from state-run banks, likely on behalf of clients,” a trader at a Mumbai-based bank said.
Trump has repeatedly issued threats that he would escalate the war on Iran he launched along with Israel in late February, only to allow more time for talks, which have so far not led to a comprehensive deal.
The dollar index was steady at 99.7 while most Asian currencies rose. The Japanese yen firmed to a three-month high after the U.S. and Japan confirmed joint intervention to support the weak currency.
Japan may have spent as much as $36.58 billion to buy yen in the latest action aimed at strengthening the local currency, data showed.
In India, the focus will be on the Reserve Bank of India’s policy decision on Wednesday. Economists expect the central bank to keep policy rates unchanged.
FX advisory firm IFA Global recommends that exporters should hedge cautiously their FX exposure only to the extent of in-hand orders while importers can use the current levels to lock in protections.
Published on August 3, 2026
