Rupee gains 35 paise to settle at 95.25 against US dollar

Story by PTI | Posted by Vidushi Gaur | Date 25-05-2026

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Mumbai

The rupee strengthened by 35 paise to close at 95.25 (provisional) against the US dollar on Monday, extending gains for the third consecutive trading session amid optimism surrounding possible progress in peace negotiations between the US and Iran.

Forex market participants said improved investor sentiment, coupled with reassuring remarks from Sanjay Malhotra, supported the domestic currency.

At the interbank foreign exchange market, the rupee opened at 95.36 against the American currency. During the session, it touched an intraday high of 95.12 and a low of 95.44 before ending the day at 95.25.

On Friday, the rupee had appreciated by 75 paise to settle at 95.60 against the dollar.

Traders said the market reacted positively after US President Donald Trump stated that the US and Iran had “largely negotiated” a peace agreement aimed at ending the nearly three-month-long conflict, although key issues, including restrictions around the Strait of Hormuz, remain unresolved.

Adding to the positive sentiment, US Secretary of State Marco Rubio reportedly indicated that India and the US are close to finalising an interim trade agreement.

Market experts also pointed to recent comments by RBI Governor Sanjay Malhotra, who said the central bank would do “whatever is required” to ensure orderly price discovery in the foreign exchange market.

In an interview with Mint, Malhotra reportedly said the Indian rupee was not overvalued and could, in fact, be undervalued following its recent depreciation.

Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six major global currencies, was trading 0.26 per cent lower at 99.98.

Global crude oil prices also declined sharply. Brent crude, the international oil benchmark, fell 5.10 per cent to USD 98.26 per barrel in futures trading.

Indian equity markets ended the day on a strong note. The BSE Sensex surged 1,073.61 points to close at 76,488.96, while the NIFTY 50 climbed 312.40 points to settle at 24,031.70.

According to exchange data, foreign institutional investors (FIIs) sold equities worth Rs 4,440.47 crore on a net basis on Friday.

Separately, the Reserve Bank of India reported that the country’s foreign exchange reserves declined by USD 8.094 billion to USD 688.894 billion for the week ended May 15. In the previous week ended May 8, reserves had increased by USD 6.295 billion to USD 696.988 billion.