At the interbank foreign exchange market, the rupee opened at 96.38 against the US dollar, registering a fall of 18 paise from its previous close.
Dilip Parmar, research analyst at HDFC Securities said, “Persistent dollar demand from importers and fears of escalating inflation, driven by surging import costs continue to pressure the local currency. On the technical front, spot USD-INR has resistance at 96. 80, with key support holding at 96. 30.”
“Nationalised banks bought dollars at 96. 27 levels on behalf of their clients and continued till the rupee fell to 96. 40 after which the market became short. There has been no correction in the rupee since the last month when the low of 94. 91 was seen and it has weakened without any correction with the dollar being overbought. The RBI and central government seems to have reconciled to the fact that the rupee will continue to weaken till there is a correction in oil prices and FPIs start investments in Indian shares. ” said Anil Bhansali, head treasury at Finrex Trading Advisors.
“The government has also made it clear that it is not changing the LTCG rate to attract more foreign portfolio investments (FPIs). So the only way out for the government is to get FCNR deposits from NRIs/Forex Bonds by banks to attract inflows to counter the outflows. Also they can reduce Liberalised Remittance Scheme limits from the current $ 250 k to $ 125 K” added Bhansali.
Since April 2025, the rupee has weakened sharply from Rs 85. 51 to 96. 15 marking a 12. 44 per cent depreciation placing it among the weakest global performers and prompting questions about how much further the rupee might slide. Foreign Portfolio Investors have sold stocks worth $842 million over the past week. The total outflows was $1. 99 billion in May and $22. 2 billion so far in 2026.
India’s April trade deficit came at $ 28. 4 billion, higher than $ 20. 7 bn in March while April WPI-based inflation came at a shocking 8. 3 per cent.
At the interbank foreign exchange market, the rupee opened at 96. 36 against the dollar. It made a high of 96. 62 and a low of 96. 27 before closing the day at 96. 53 down 19 paise from its previous close of 96. 34. The dollar index was stable near to 99. 23 as oil prices remained stable at $ 110. 96 per barrel as the market awaited on the outcome of the negotiations between US-Iran.
