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FinanceIndian rupee falls 12 paise to 96.42 on West Asia crisis, crude surge
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The Indian rupee weakened by 12 paise to 96.42 against the US dollar in early trade on July 20, 2026, driven by a surge in crude oil prices to $90.26 per barrel and strong demand for the greenback amid escalating West Asia tensions. The US and Iran have moved closer to all-out war after a previous interim deal collapsed, with US airstrikes targeting Iran and Iranian missiles fired towards Jordan, risking wider conflict involving Israel. Foreign capital outflows from domestic equity markets also weighed on the rupee. On the stock market front, the Sensex tumbled 593.78 points (0.76%) to 77,557.67, and the Nifty declined 169.20 points (0.70%) to 24,165.10. Foreign Institutional Investors offloaded equities worth ₹376.41 crore on a net basis on Friday. Meanwhile, India's forex reserves rose by $964 million to $675.157 billion in the week ended July 10.
Source report
The Sensex tumbled 593.78 points, or 0.76%, to 77,557.67, while the Nifty declined 169.20 points, or 0.70%, to 24,165.10
Updated - July 20, 2026 01:58 pm IST — Mumbai
PTI
The rupee weakened 12 paise to 96.42 against the U.S. dollar in early trade on Monday (July 20, 2026), driven by a surge in crude oil prices and strong demand for the American currency amid the worsening West Asia crisis.
Foreign capital outflows from domestic equity markets also weighed on the Indian currency, according to forex traders.
Forex Market
At the interbank foreign exchange, the rupee opened lower at 96.53 against the previous close of 96.30 to the dollar. The local unit pared some losses to trade at 96.42 later, down 12 paise from its previous close.
On Friday (July 17, 2026), the rupee gained 12 paise to settle at 96.30 against the U.S. dollar, supported by positive domestic market sentiment and a decline in U.S. Treasury yields.
Global Indicators
- Dollar Index: Trading marginally down by 0.05% at 100.54.
- Brent Crude: Trading 2.45% higher at $90.26 per barrel in futures trade, as the U.S. and Iran have inched closer to all-out war. Last month’s interim deal meant to permanently end the fighting has crumbled, and shipping traffic in the Strait of Hormuz has largely stalled.
Geopolitical Developments
- The United States conducted a new round of airstrikes early on Monday (July 20, 2026) targeting Iran, after announcing the death of another American service member.
- Iran fired missiles towards Jordan, risking widening the conflict into neighbouring Israel.
- Bahrain sounded its missile alert sirens on Monday morning (July 20, 2026), warning of an Iranian retaliatory attack after U.S. airstrikes targeted the Islamic Republic.
Domestic Equity Market
- Sensex: Tumbled 593.78 points, or 0.76%, to 77,557.67.
- Nifty: Declined 169.20 points, or 0.70%, to 24,165.10.
Capital Flows
Foreign Institutional Investors (FIIs) offloaded equities worth ₹376.41 crore on a net basis on Friday (July 17, 2026), according to exchange data.
Forex Reserves
Data released by the Reserve Bank of India on Friday (July 17, 2026) showed that India’s forex reserves jumped $964 million to $675.157 billion in the week ended July 10. In the previous reporting week, the overall kitty had jumped by $7.26 billion to $674.193 billion.
Published - July 20, 2026 11:47 am IST
Source
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Regional
Part of this Story
Indian Rupee Fluctuates Amid US-Iran Tensions and Fed Policy