Rupee falls 31 paise to close at 95.67 against U.S. dollar
The Indian rupee depreciated against the U.S. dollar following a U.S. proposal to impose additional duties on Indian imports due to alleged labor violations. Market participants are now focused on the upcoming Reserve Bank of India monetary policy meeting to gauge the economic response.
Why it matters
Trade tensions and currency volatility highlight the fragile economic relationship between the U.S. and India, impacting investor sentiment and domestic inflation.
The rupee depreciated 31 paise to close at 95.67 (provisional) against the U.S. dollar on Wednesday (June 3, 2026), after the U.S. Trade Representative proposed a 12.5% additional duties on Indian imports, citing labour violations. Forex traders said strong dollar demand, surging crude oil prices, geopolitical tensions, and relentless foreign capital outflows dented investor sentiment further.
The report provides a factual account of market movements and government statements without editorializing.
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