Rupee records biggest single day fall in a month

India High Resolution Question Mark Concept istockphoto for BL | Photo Credit: XtockImages

The rupee on Monday almost ceded all the gains it made in the last trading session, recording its biggest single day fall in a month in the process.

The Indian currency was weighed down by high crude oil prices amid the continuing West Asia conflict, dollar gaining strength and expectation of the US Fed tightening monetary policy in the coming months.

The rupee closed at 95.71 per US dollar, down 0.81 per cent, against the previous close of 94.94.

The Indian currency got a booster shot last Friday as the RBI announced crucial measures to attract foreign capital via Foreign Currency Non-Resident (Bank) deposits, overseas borrowings, government securities, and equity investments.

These measures buoyed the rupee, which posted its biggest single-day gain since April 2. It perked up 84 paise to close at 94.94 per US dollar against the previous close of 95.89.

Amit Pabari, MD, CR Forex Advisors, observed that the RBI’s measures should not be viewed only through the lens of today’s market conditions.

“By taking these measures now, the central bank has laid the groundwork for attracting foreign capital when global risk appetite improves. Once sentiment turns more favourable, these channels will allow inflows to come in more smoothly, supporting India’s balance of payments and providing a stronger foundation for the rupee,” he said.

Pabari opined that while the current global environment is creating near-term pressure on the currency, the medium-term outlook remains constructive, with USD/INR likely to move below 94.50 once market conditions stabilise.

However, if tensions between the US and Iran continue to escalate, leading to higher oil prices and increased risk aversion, USD/INR could move back towards the 95.70-96.00 range.

Published on June 8, 2026