Rupee falls 7 paise to 95.68 against U.S. dollar in early trade
Forex traders said Brent crude near $91 per barrel increased oil-related dollar demand and the Reserve Bank's earlier-than-expected closure of the concessional FCN (B) forex-swap facility raised concerns over future dollar inflows.
The Indian rupee slipped 7 paise, reaching 95.68 against the U.S. dollar at the start of trade on Tuesday, August 18, 2026, according to wire reports. This decline was attributed to high crude oil prices and ongoing demand for the U.S. currency. Forex traders highlighted that Brent crude oil prices nearing $91 per barrel fueled the need for dollars, while the Reserve Bank's early suspension of the concessional Foreign Currency Non-Resident (FCN) forex-swap facility raised doubts about future dollar inflows.
At the interbank foreign exchange market, the rupee opened at 95.68, down 7 paise from its previous close. On Monday, August 17, the rupee had weakened by 19 paise, closing at 95.61 against the U.S. dollar. The decline was attributed to rising oil prices amid tensions between the U.S. and Iran over the Strait of Hormuz and the lack of progress towards a peace agreement.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted that the dollar index, which measures the strength of the greenback against six major currencies, was at 99.63, down 0.01%. Brent crude oil, the global benchmark, was trading 0.52% higher at $91.34 per barrel. Bhansali suggested that the rupee may continue to depreciate due to persisting oil price concerns and sustained demand from oil companies.
Meanwhile, the domestic stock markets faced losses, with the Sensex down 278.32 points to 77,450.64 and the Nifty falling 57.65 points to 24,230.45. On Monday, foreign institutional investors sold equities worth ₹2,535.10 crore, as per exchange data.
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