The Indian rupee ended little changed on ​Monday, retreating from a three-week high hit in early trade, ‌as dollar demand from importers and ​state-run banks gathered pace, blunting the boost ⁠from a sharp fall in oil prices.

The currency, which climbed to a peak of 95.1275 as Brent crude prices ‌slumped after U.S. President Donald Trump called off an imminent attack in hopes of ‌quickly reaching a deal, ended at 95.3375 per ‌dollar ⁠against the 95.38 previous close.

Talks between Washington ⁠and Tehran are scheduled on Monday, lifting global stocks, including those in Mumbai.

While the rupee received a sentimental boost ​from the lower oil prices, “there ‌were very strong dollar bids around 95.15 levels from state-run banks, likely on behalf of clients,” a trader at a Mumbai-based bank said.

Trump has ‌repeatedly issued threats that he would ​escalate the war on Iran he launched along with Israel in late February, only to ⁠allow more time for talks, which have so far not led to a comprehensive deal.

The dollar ‌index was steady at 99.7 while most Asian currencies rose. The Japanese yen firmed to a three-month high after the U.S. and Japan confirmed joint intervention to support the weak currency.

Japan may have spent as much as $36.58 billion to buy ‌yen in the latest action aimed at strengthening the local ​currency, data showed.

In India, the focus will be on the Reserve Bank of India’s policy ⁠decision on Wednesday. Economists expect the central bank to ⁠keep policy rates unchanged.

FX advisory firm IFA Global recommends that exporters should hedge cautiously ‌their FX exposure only to the extent of in-hand orders while importers can use the ​current levels to lock in protections. 

Published on August 3, 2026