The Indian currency experienced significant fluctuations before closing lower, influenced by geopolitical concerns and the Reserve Bank of India’s deadline for banks to limit their overnight positions to $100 million.
In the interbank forex market, the rupee started at 92.58 per US dollar, dipped to a session low of 92.76, and reached a high of 92.41.
By the close of trading, it stood at a provisional 92.68, down 17 paise from the prior session.
The previous day, it had edged up by 3 paise to 92.51.
Analysts noted that the fragile US-Iran ceasefire is creating ongoing uncertainty, with the Strait of Hormuz still blocked.
The dollar index, measuring the US currency against six others, rose 0.03 percent to 98.84, as demand for safe assets eased slightly but remained supported by the unstable truce.
Brent crude futures increased 0.97 percent to $96.86 per barrel, driven by concerns over potential disruptions in the Strait of Hormuz.
US President Donald Trump plans to dispatch a team headed by Vice President JD Vance to Islamabad for negotiations with Iran to resolve the Middle East crisis.
In India’s stock markets, the Sensex climbed 918.60 points to 77,550.25, and the Nifty advanced 275.50 points to 24,050.60.
Foreign investors sold shares valued at Rs 1,711.19 crore the day before, per exchange records.
The Asian Development Bank warned that an extended Middle East conflict could harm India’s economy via elevated energy costs, interrupted trade, and reduced remittances.
In its April 2026 Asian Development Outlook, the bank forecasted India’s GDP to grow at 6.9 percent this fiscal year, increasing to 7.3 percent next year, fueled by solid internal demand, better financing, and reduced US duties on Indian exports.
(This report is based on a syndicated feed and has not been altered by NDTV staff.)
