The Indian rupee clocked its sharpest one-day fall since march to close 83 paise lower at 95.31 against the US dollar.
On Friday, the legal tender had settled at 94.48 per dollar.
According to analysts, Prime Minister Narendra Modi's address surrounding concerns regarding West Asia war impact on crude oil prices, higher import bill, have put pressure on the currency.
"The PM Modi speech has raised concerns about the pressure of a higher import bill on India's economy and currency stability, especially with elevated crude prices continuing to strain the external balance," said Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities
He added that while the government's message was aimed at promoting long-term self-reliance and reducing unnecessary imports, the immediate market reaction remained cautious, which weighed on sentiment in the currency market.
"In the near term, rupee is expected to trade in a range of 94.75–95.75, and a sustained close below 95.5 could open the path towards the 96 level," Trivedi highlighted.
The currency had dipped 84 paise on March 27, 2026 and settled at 94.81 against the US greenback.
Market Recap
Indian equity benchmarks ended the session sharply lower, clocking their steepest fall since March 30, with the NSE Nifty 50 closing down 1.49% at 23,815.85 and the BSE Sensex falling 1.70% to 76,015.28. Investor wealth declined by about Rs 6.4 lakh crore on Monday.
The declines came after the US President Donald Trump rejected Iran's response to a US peace proposal, raising concerns over prolonged conflict in the Persian Gulf. Domestically, markets reacted to remarks by Prime Minister Narendra Modi urging fuel conservation and restraint on gold purchases amid pressure from rising energy prices, adding to concerns around India's external balances.
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