The rupee weakened sharply as global risk sentiment favoured the US dollar.
Mumbai: The Indian rupee depreciated by 31 paise to settle at 90.99 (provisional) against the US dollar on Friday, weighed down by a stronger American currency and elevated crude oil prices amid escalating US-Iran tensions.
Forex analysts said that despite positive momentum in domestic equity markets, the rupee failed to gain support as geopolitical risks and dollar strength dominated sentiment in the currency market.
At the interbank foreign exchange market, the rupee opened at 90.94 against the US dollar and slipped to an intraday low of 91.04. It eventually closed at 90.99 (provisional), marking a sharp decline from the previous close of 90.68 on Wednesday. Currency markets remained shut on Thursday on account of Chhatrapati Shivaji Maharaj Jayanti.
Analysts attributed the strengthening of the greenback and volatility in crude oil prices to intensifying tensions between the United States and Iran. Both nations have indicated readiness for conflict if negotiations over Tehran’s nuclear programme collapse, heightening global risk aversion.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee weakened on geopolitical concerns and a firm US dollar. Rising crude oil prices further pressured the domestic currency, although gains in Indian equity markets helped limit deeper losses.
“We expect the rupee to trade with a slight negative bias on escalating geopolitical tensions and strengthening of the dollar,” he said, adding, “USD-INR spot price is expected to trade in a range of Rs 90.70 to Rs 91.30,” he said.
The dollar index, which measures the US dollar against a basket of six major currencies, was marginally higher by 0.01 per cent at 97.86.
Brent crude, the global oil benchmark, was trading 0.50 per cent lower at USD 71.50 per barrel, though prices remain sensitive to geopolitical developments in West Asia.
In the domestic stock market, the BSE Sensex rose 316.57 points, or 0.38 per cent, to close at 82,814.71, while the Nifty 50 advanced 116.90 points, or 0.46 per cent, to 25,571.25.
Meanwhile, foreign institutional investors (FIIs) offloaded equities worth ₹880.49 crore on Thursday, according to exchange data, adding pressure to capital flows amid global uncertainty.
The latest movement underscores continued volatility in the rupee-dollar exchange rate, driven by global geopolitical risks, crude oil price fluctuations and shifts in foreign portfolio investment.
PTI
Published: 20 Feb 2026, 04:39 pm IST
Subscribe to our Newsletter
Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.
