Indian rupee weakened against the US dollar on Tuesday as tensions between Unites States and Iran flared up after US military conducted strikes against Iran for the third consecutive night. Further, US President Donald Trump has reinstated a blockade of Iranian shipping and proposed charging a 20% fee to guard the Strait of Hormuz. These tensions in West Asia have spiked up the global crude oil prices which also weighed on Indian rupee. Brent crude oil prices have surged over 3% to trade above $86 a barrel. Further, investors took a cautious approach after India's wholesale price index (WPI) inflation surged to 9.87% in the month of June 2026 from 9.68% in May 2026, as a fresh spike in food, non-food articles and minerals outweighed a moderation in fuel inflation. On the global front, the euro has strengthened against the US dollar on Tuesday amid rising expectations of interest rate hike by European Central Bank.
Finally, the rupee ended at 96.26 (Provisional), weakened by 58 paise from its previous close of 95.68 on Monday. The currency touched a high and low of 96.33 and 95.94 respectively.
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