The currency closed at 95.27, from its previous close of 94.99, as dollar demand from hedgers continued, traders said. It traded in the range of 95.29 and 95.02 per dollar.
The rupee depreciated nearly 11% in FY26. It has depreciated 0.17% in FY27 so far. However, at current levels, the rupee has appreciated 2% from its record low of 96.96 on May 20.
“Heavy bids from oil marketing companies have kept the rupee under pressure for the entire day, while on the other hand the RBI bought dollars. We expect the rupee to trade in the range of 94.75 to 95.75 on Wednesday,” said a trader from a private sector bank.
Any positive news on the US-Iran peace deal would support the rupee, the trader said. Brent crude futures were down $1.13, or 1.2%, to $93.85 a barrel, as Iran reviews proposed US agreement, according to Reuters.
Market participants’ focus this week will be on the RBI’s rate decision on Friday, along with its communication on the currency.
