The Indian rupee fell by 15 paise to 95.56 against the US dollar in early trade on Wednesday, June 10, 2026, as persistent foreign capital outflows and a cautious mood in domestic equity markets weighed on the local currency.
At the interbank foreign exchange market, the rupee opened at 95.52, then lost ground and touched 95.56 in initial trade, registering a fall of 15 paise from its previous close of 95.41.
Factors Behind the Rupee's Decline
Forex traders attributed the rupee's weakness to sustained demand for the US dollar from importers and foreign investors. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.1% higher at 104.50, adding pressure on emerging market currencies.
Meanwhile, domestic equity markets opened on a negative note, with the benchmark BSE Sensex declining nearly 200 points in early deals. The sell-off in equities further dampened investor sentiment for the rupee.
Impact of Foreign Fund Outflows
Foreign portfolio investors (FPIs) have been net sellers in Indian equities over the past few sessions, pulling out funds amid global uncertainties. According to exchange data, FPIs offloaded shares worth Rs 1,200 crore in the previous trading session.
Additionally, crude oil prices hovering near $85 per barrel raised concerns about India's import bill, which could widen the trade deficit and weaken the rupee further.
Market Outlook
Analysts expect the rupee to trade in a range of 95.30 to 95.80 in the near term, with the Reserve Bank of India likely intervening to prevent excessive volatility. The central bank's intervention through dollar sales has helped cap sharp falls in the past.
On the global front, investors await the US Federal Reserve's monetary policy decision later this month, which could provide cues on the pace of interest rate cuts. Any dovish stance by the Fed may weaken the dollar and provide some relief to the rupee.
The rupee has been under pressure since the beginning of 2026, depreciating nearly 2% so far this year. The currency has been impacted by a combination of domestic and global factors, including geopolitical tensions and concerns over economic growth.
