Rupee falls 7 paise to 95.68 against U.S. dollar in early trade

The rupee depreciated 7 paise to 95.68 against the U.S. dollar in early trade on Tuesday (August 18, 2026), influenced by rising Brent crude prices near $91 per barrel and concerns over the Reserve Bank of India's (RBI) earlier-than-expected closure of the concessional FCN (B) forex-swap facility. This raised doubts about future dollar inflows. The rupee opened at 95.68, down 7 paise from its previous close of 95.75. On Monday (August 17), the rupee fell 19 paise to close at 95.61. Oil price volatility, tensions between the U.S. and Iran over the Strait of Hormuz, and no progress on a peace deal contributed to the depreciation. Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, noted the rupee's vulnerability to rising oil prices, which have remained close to $90 and now exceed $91 per barrel. The RBI may be intervening to protect rates near 95.61 or 95.75 but anticipates continued depreciation due to oil demand. Meanwhile, the dollar index traded at 99.63, down slightly, while Brent crude rose 0.52% to $91.34. The domestic equity market saw Sensex drop 278.32 points to 77,450.64 and Nifty fall 57.65 points to 24,230.45 in early trade. Foreign institutional investors offloaded ₹2,535.10 crore in equities on Monday.