The Indian Rupee plunged by 34 paise to close at 94.67 against the US Dollar as the market opened with a strong American currency in the overseas market.
At the interbank foreign exchange market, the rupee opened at 94.42, registering a decline of 9 paise from its previous close. In intraday trade, the rupee traded in the range of 94.24 to 94.76. At the end of Monday’s (June 22) trading session, the USD/INR was quoted at 94.67 (provisional), lower by 34 paise over its previous close.
On Friday, the domestic unit closed higher by 7 paise at 94.33 against the U.S. dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.88, up 0.03%, amid hawkish Fed and the fragile U.S.-Iran trade deal.
Recent policy interventions by the Reserve Bank of India (RBI) and the government have helped ease pressure on the Indian rupee, but structural risks linked to global capital flows and prospective US monetary tightening continue to cloud the currency’s outlook, according to a reports.
The report further highlighted the impact of the government’s decision to make investments in Indian government securities tax-free for foreign portfolio investors (FPIs). Following the policy announcement on 5 June, FPI inflows into Indian debt under the Fully Accessible Route (FAR) surged to USD 1.7 billion in ten trading days, compared with USD 229 million in the ten trading days preceding the announcement.
The report also warned that higher US interest rates could weigh on foreign portfolio investment into Indian equities. Citing EPFR data, it noted that USD 120 billion flowed into US equities during the week ended 19 June 2026, driven by exchange-traded funds and continued investor enthusiasm around artificial intelligence-related opportunities