Rupee Gains on Weak Crude Oil Prices, Diplomatic Talks

The Indian rupee appreciated 15 paise to close at 95.81 against the U.S. dollar on Monday, September 21, 2026, due to weak crude oil prices and improved global risk sentiment amid expectations of diplomatic talks between the U.S. and Iran.

Forex traders said the rupee firmed up on falling crude oil prices after reports emerged that Iran may be open to negotiations with the U.S. However, the situation remains uncertain as Iran shot down a U.S. drone in the Strait of Hormuz last week, which could deteriorate risk sentiments.

According to Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, the rupee is expected to trade with a slight positive bias due to falling crude oil prices. However, he also warned that an increase in supplies from Saudi Arabia may put pressure on crude oil prices and potentially weaken the rupee.

The dollar index was trading at 100.32, higher by 0.10%, while Brent crude was down 2.08% at $101.71 per barrel in futures trade. The domestic equities market also saw a positive trend, with Sensex rising 564.03 points to settle at 74,858.99.